The government would be paying part of the rent of vulnerable people in employment, Social Solidarity Minister Michael Farrugia said.

The system will work in a manner similar to the tapering of unemployment benefits, over a period of three years, and will target those emerging from prison, drug rehabilitation programmes or domestic violence shelters.

“Vulnerable people who are working but have still not found their feet will have 65 per cent of their rent paid off during the first year,” Dr Farrugia said.

This will be tapered over a three-year period following an agreement with the tenants. The scheme is expected to be rolled out later this year. In cooperation with the Church and the private sector, the government will also be opening an emergency shelter for those who face sudden problems and require refuge.

Discussions are under way for the shelter to be located in Birkirkara. It is expected to be launched later this year.

Meanwhile, a number of contractors who owe the Exchequer hefty sums of money will be allowed to settle their debts by handing over to the government unsold properties whose value is estimated to be equal to the debts owed. Such properties would be converted into social housing, Dr Farrugia said.