The minimum rate of children's allowance will rise from €350 to €450 per child, Finance Minister Tonio Fenech announced in the Budget today. The allowance will be of €527 for families on the minimum wage.20,400 families are expected to benefit.

Mr Fenech said the government is planning to build childcare centres in Naxxar, San Gwann, Gzira and Zurrieq.

Parents who send their children to childcare centres will continue to benefit up to €1,300 in tax rebates while mothers who return to work after being away for five years or more to raise children will continue to benefit from a tax-free period of one year.

As announced last year, maternity leave is rising to 18 weeks.

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