Caritas Malta has called for measures to assist very low income families, particularly those dependant on social benefits and the minimum wage.
In a document on the impact of the Budget, the Church NGO says that while increases to the minimum wage since 1991 were pegged to the rate of inflation without giving due consideration to factors such as productivity and economic growth, the calculation of the wage had also ignored changes in the basic expenses of Maltese families, such as the onset of the internet and electronic devices.
"This factor has contributed to the national minimum wage today not being enough to assure beneficiaries a decent standard of living. Effectively, from research that has been undertaken by Caritas Malta, it has already been established that it is practically impossible for a person who lives on the national minimum wage only to enjoy a decent standard of living," Caritas said.
Caritas said it agreed with every measure that encouraged people to avoid becoming excessively dependent on social security benefits, since dependency tended to be associated with a myriad of social and psychological problems;
In calling for more job opportunities and proper working conditions, Caritas said certain types of work did not necessarily mitigate poverty, particularly those that bound employees by a definite contract or that enlisted them in piecework.
"It is pointless improving the rate of the unemployed poor if, at the same
time, the rate of working poor increases," it said.
It was positive, it added, that the Budget was promoting a philosophy wherein people's industriousness was encouraged, particularly as manifested in such areas as employment, training, or engaging in studies. Therefore it was strongly in favour of widening the difference between social benefits
and the national minimum wage.
It suggested that the minimum wage could be supplemented by welfare benefits that were offered to those who were financially dependent on it, so as to make ends meet.
"These benefits can be similar to those that are offered to people who are registering for work. It is believed that if unemployed people find work at the national minimum wage, then they should not be forced to lose all their welfare benefits at one go," it said, echoing a measure proposed in the Budget.
Caritas said a number of people could not work, not because they did not want to, but because of issues that genuinely put them in this position, including sickness, disability, mental health problems; and also people who are full-time carers of others. Such people/families deserved to have an appropriate level of income that would at least enable them to be able to
afford to buy the goods and services necessary for daily living.
The organisation said it backed measures to deter tax dodging and benefits fraud and said social welfare benefits needed to be controlled even through
means testing.
The NGO welcomed the plans for free childcare centres and for reduced water and electricity tariffs.