Lifting 5,700 people out of the risk of poverty

Budget 2024 measures expected to reduce poverty by 1.1 percentage points.

Estimates published in the National Reform Programme, submitted by the Maltese government to the European Commission, show that the Budget 2024 social measures are expected to reduce the percentage of the population at risk of poverty by 1.1 percentage points.

This means that these measures are expected to remove around 5,700 people from a situation at risk of poverty. The biggest impact will be that of the additional cost-of-living mechanism. With the broadening of this mechanism, it is expected that around 3,400 persons that were formerly below the 60% poverty threshold will emerge from this vulnerable situation.

The increase in the children’s allowance, together with other measures such as the allowance to families with children pursuing post-secondary education, is projected to reduce the percentage of single parents at risk of poverty by 2.6%, while the percentage of families with three or more children at risk of poverty should decrease by 4.49%.

The increase in pensions and in the senior citizens grant is estimated to reduce poverty among the elderly by around 1 percentage point.

Meanwhile, households with incomes in the bottom decile of the income distribution are expected to see an improvement of around 4.5% in their income. Those in the next band, who earn around the poverty threshold, will see an improvement of just under 2.5%.  A middle-class family will get about a 1% increase in revenue as a result of these Budget measures. 

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