The Labour government has announced the first two instalments of the additional Cost of Living Allowance (COLA) for 2025. These payments, which will be disbursed over the weekend, are part of a wider package of support that also includes subsidies on energy and cereal prices.

The Minister for Social Policy and Children’s Rights, Michael Falzon, shared the details of the initiative during a press conference on Wednesday morning. He confirmed that more than 97,000 families will receive the first of two benefit payments for the year 2025. This marks an expansion of the scheme, which now covers even more households than before.

Minister Falzon emphasised the government’s unwavering commitment to supporting citizens during these difficult times.

“For this first additional COLA payment, the Government will invest a total of almost €24 million. We are continuing to do this because we truly believe in people, and it is our obligation to continue to incentivise and help in the best way possible.”

The scheme’s effectiveness lies in its targeted approach, ensuring that those who need help most are the ones who benefit the most. Permanent Secretary Mark Musu elaborated on the mechanism used to determine the payment amounts. He explained that eligibility and the amount received depend on two key factors: the income level of the family or individual, measured against 60% of the national median equivalised income, and the size of the household.

The relevant income used to determine eligibility is based on figures from 2023, as reported to the Tax Department. The amount is calculated net, after deductions for social security contributions and taxes. This means that families with lower incomes will receive higher payments, while larger households will also be entitled to more support.

The government has set a cap on the payments, with each family able to receive up to €1,500 per year through the COLA scheme.

These payments are a part of the Labour government’s broader strategy to mitigate the effects of inflation, ensuring that the most vulnerable members of society can keep up with rising living costs. Through these targeted interventions, the government is continuing to provide significant assistance to families, showing its commitment to social support and the well-being of its citizens.