People aged over 80 who live alone in their own home will be given a grant of €300 per year in a measure which will benefit some 12,000 pensioners, Finance Minister Tonio Fenech said in the Budget speech today.

All pensioners will also receive the full cost of living allowance, meaning that pensioners aged over 80 will be getting a total of €10 per week.

He said that pensioners as from January 1 will also not pay VAT on private nursing and home help services where home help is required.

With regard to the tax break for relatives of old age pensioners who live in privately-run old people's homes, the tax exemption will increase by €500 to €2,500 per year. This will also apply in cases where it is the pensioners themselves who pay.

Mr Fenech said the government will spend €1.7m on transforming Zammit Clapp Hospital into a nursing home.

A site has been identified in Birkirkara for a new old people's home on the lines of that in Mellieha. Two new day care centres for the elderly will also be opened. Moe night shelters are also planned.

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