Prime Minister Joseph Muscat announced increases to the in-work benefit when he addressed a press conference after the Budget speech on Monday.

Dr Muscat said the government was removing discrimination suffered by workers formerly employed in a government entity who benefited from an early retirement scheme before 2008 but had never been given a raise since.  

With regard to the in-work benefit, he said rates were being increased between €50 and €100 per child of the workers involved.

Those people aged over 26 living on social benefits who opted to return to studying would also be given a stipend equivalent to the minimum wage.

He also announced assistance to workers who used to work in Libya to regularise their social benefits situation and thus benefit from a better pension. 

In his address, Dr Muscat said he was proud to lead a government which had again not taken anything from the people but was actually giving the people more, both financially and in free time.