Disability allowances are to be increased with the introduction of a new three-tier system, Social Solidarity Minister Michael Farrugia announced today.

Addressing a press conference, Dr Farrugia said people with the most severe disabilities (0-4 on the Barthel Index) who are incapable of living independently would be given a weekly tax-free allowance of €120 from next year.

This new allowance would eventually increase to reach the minimum wage and people granted this allowance would not be means tested, Dr Farrugia said.

Applicants must be under 60-years of age and applications would be vetted by a multi-disciplinary board, Dr Farrugia said.

The minister explained that people entitled to this allowance would also automatically be entitled to a pink disability card. This card would now be renewed yearly instead of every three months.

Dr Farrugia said over 2,000 people were expected to benefit from this new allowance.

A second form of allowance is being given to people who currently receive a disability pension. This allowance would allow people who qualify to work without any reduction in their disability pension.

Dr Farrugia said the rate for this allowance would be a maximum of €102 per week. Means testing for this allowance would continue to take place, but any income from work would not be considered, Dr Farrugia said.

The minister said means testing would not take place for the pink card either.

The third allowance applies to amputees or those who have lost function in one of their limbs.

Dr Farrugia said people who qualified for this allowance would be given a maximum of €76.60 per week.