The General Workers' Union has urged the government to take action to reduce the incidence of poverty.
The union said it was not happy with the results of a recent EU survey which revealed that around 60 per cent of the Maltese felt they were struggling to make ends meet.
These statistics confirmed the union's warnings that poverty was on the rise and that the water and electricity bills were one of the biggest contributors, it said in a statement.
In the study, 7.2 per cent of the Maltese said they fell back on paying their bills while 13 per cent did not have enough money for essential items, including food. Another 32 per cent said they were in a constant struggle to make ends meet.
Asked for his comments after the survey was published, Prime Minister Lawrence Gonzi pointed out on Thursday that it was a study of perception. He said over 30,000 families received social benefits while the government had allocated €10 million to cushion the increased water and electricity bills.
He said the government was trying to change the perception of poverty and would continue working to make sure all the benefits generated from economic growth would filter down to everyone.
Dr Gonzi's statement led to a reaction from the Labour Party yesterday which described it as "shocking in it insensitivity".
Instead of tackling the hardships, Dr Gonzi wanted people to believe they were imaginary. It was his policies and decisions that were leading to higher poverty and reducing the quality of life, the Labour Party said.
It said it understood this reality and, when in government, would fight poverty and improve families' standard of living.
In reply, the government accused the Labour Party of ignoring the truth and the Prime Minister's statement for partisan reasons.
Dr Muscat was misinterpreting the survey and not differentiating between reality, perception, poverty risk and real poverty, the government said.
It pointed out that, while other countries were reducing social benefits, freezing wages and cutting down on investment in the social sector, it was actually investing more.