The €300 annual allowance given to people aged 80 and over is to be extended to all those aged 78 and over, Finance Minister Tonio Fenech said in the Budget speech this evening.
The aim, he said, is to eventually extend this allowance to all those aged 75 and over.
The minister said the government is also planning to convert Casa Flamini in Paola into a home for the elderly and a night shelter. .
The minister said pensioners will receive the cost of living adjustment in full.
There will also be a revision of the supplementary allowance for those aged over 65 where income is such that the family is considered to be at risk of poverty.
Meanwhile the amount which may be drawn from Service Pensions is to be extended by a further €200 so that the amount exempt from the calculation of the social security pension will be €1,266 per annum.