Issue link: https://maltatoday.uberflip.com/i/1543022
3 maltatoday | WEDNESDAY • 4 FEBRUARY 2026 NEWS CONTINUES FROM PAGE 1 This study predates recent controversy over childcare re- marks by Gozo's Bishop Anton Teuma. While public debate has been reignited by the bish- op's criticism of parents send- ing young children to childcare centres, the report shows that free childcare has helped single mothers and families with mul- tiple children enter the work- force while raising female par- ticipation and reducing welfare dependence. Impact on single mothers and vulnerable families For single mothers, the like- lihood of being employed in- creased enough to reduce the gap between them and other mothers by about a quarter. In concrete terms, many women who had been out of work after childbirth were able to return to paid employment for the first time. Mothers with two children saw an even bigger improve- ment, with nearly 40% of the previous employment gap closed, meaning more women in these families were able to start working rather than stay at home due to childcare costs. Mothers with three or more children also experienced gains, though slightly smaller. Most of these improvements came from women entering the workforce for the first time, rather than from women who were already working. Dramatic growth in childcare enrolment Enrolment in Malta's child- care scheme surged from 875 children in 2014 to 9,400 by 2024, marking a nearly elev- en-fold increase in participa- tion. At the 2014 launch, usage was almost exclusively among infants; 99.4% (870 children) were under age 2, while on- ly five children were in the 2–3-year age bracket. By 2016, the composition shifted as the older cohort grew: children under age 2 rep- resented 54.9% of participants, while those aged 2–3 rose to 45.1%. Overall, formal attend- ance for all children under 3 reached 51% by 2023. This rapid expansion reflects both the demand for affordable childcare and the programme's success in removing financial barriers that had previously limited maternal employment. Broader labour market effects The scheme generated mod- est fiscal savings, particularly through reductions in welfare dependency. Claims for social assistance under the Single Unmarried Parents (SUP) pro- gramme fell by around 1.2 per- centage points after the reform, while general social assistance saw smaller reductions of 0.5– 1.1 percentage points. There was no measurable effect on unemployment benefits, large- ly claimed by fathers. Malta's historically low fe- male labour market partic- ipation framed the need for reform. In 2012, only 45.3% of women aged 15–64 were em- ployed, compared with 74% of men. By 2024, following the free childcare scheme and the complementary initiative la- belled Making Work Pay that include in-work benefits and the tapering of social welfare when a person finds a job, fe- male employment rose to 72.3%, surpassing the EU-27 average. Limitations and structural challenges Despite these gains, most of the employment effects oc- curred while children were eli- gible for the scheme. Once chil- dren grew older, many mothers returned to their previous em- ployment patterns. The overall impact of free childcare was smaller than in some other countries, partly because many Maltese families already rely on grandparents, relatives, or friends for childcare. As a result, free formal childcare did not dramatical- ly change childcare arrange- ments for all households. The scheme's benefits were con- centrated among traditionally disadvantaged groups. There was no significant differential effect by household income or for mothers of children with disabilities. This indicates that universal, work-conditional de- signs can promote equity with- out the administrative hurdles or stigma of means-tested pro- grammes. Childcare needs to be backed up by more support The study also highlights structural limitations of work-conditional childcare. Without continued affordable childcare or flexible work ar- rangements, mothers may re- vert to inactivity if employment opportunities are unstable or poorly paid. To sustain labour market gains, the report recommends complementary measures such as support for older children, part-time and flexible work op- tions, and targeted outreach to vulnerable subgroups. Overall, Malta's Free Child- care Scheme demonstrates the potential of universal, work-conditional childcare to improve employment pros- pects for mothers, particular- ly those most at risk of labour market exclusion. While short- and medi- um-term gains are encourag- ing, lasting impact depends on extending support beyond the narrow eligibility window and addressing broader structural barriers to maternal employ- ment. Free childcare needs to be backed up by more support, Central Bank study suggests