Issue link: https://maltatoday.uberflip.com/i/739617
News 11 Budget 2017 maltatoday, TUESDAY, 18 OCTOBER 2016 SOCIAL MEASURES & JUSTICE Distribution of wealth for all JURGEN BALZAN THE distribution of wealth in what argu- ably could be called an economic boom was the central message of Edward Scicluna's fourth budget. After "stabilising" the country's finances, Scicluna said that government was now in a position to distribute wealth following unprecedented economic growth and job creation. Despite being a firm believer in trickle down economics, government has an- nounced a number of measures which at- tempt to directly address inequalities, es- pecially pensioners. Within the first few minutes of his speech, it was obvious that pensioners, low income earners and the most vulnerable people in societ y are government's main targets, with Scicluna clearly spelling it out; "povert y is not a perception, but a realit y we will tackle with facts." However, these mesures would not have been possible without a sound economy and the figures show that the country's fi- nances are in good shape, probably the best they have been since the economic boom in the 90s. Scicluna said that government was well aware of the causes of povert y; a lack of work, low-income jobs especially for un- skilled workers, old age – especially for pensioners depending on one pension – and health issues and other problems which lead to families depending on state aid. In-work benefit The number of families at risk of povert y and social exclusion has been cut by 5,000 within Labour's first year in government and Scicluna said that this was achieved thanks to a number of measures, including tapering and incentives for single parents to enter the labour market. Sciucluna announced that the ceiling for in-work benefits will increase by €50 for families with two working parents earning up to €20,399 will see their in-work benefit increase by €200 a year. Single parents earning between €6,600 and €14,999, who currently receive up to €1,200 will benefit from a €50 increase while families who only have one bread- winner will benefit from increases ranging between €150 and €350, depending on their income. This will benefit 3,000 families on low or medium income. Minimum wage earners Minimum wage earners will at least get a €4 a week increase, or €208 a year, with government bearing the full cost of the in- creases. Over and above the COLA, families with one breadwinner on a minimum wage and who do not have children will receive a €4.38 a week increase while single people who earn a minimum wage will receive an increase of €126.36 a year. This will benefit 11,000 couples and 5,000 single people. Pensioners Once again, pensioners over the age of 75 who still live in their private residence will get a €300 grant while up to 12,500 elderly people who do not qualif y for a pension be- cause they only paid between two and four years of National Insurance contributions will get a €150 bonus. Following the increase of the minimum pension to €140 a week in last year's budget, elderly people on a minimum pension will also get a €4 increase. This will also benefit some 2,500 married pensioners who receive an old age pension. Pensioners will also be exempted from paying income tax on pensions, including external ones e.g. foreign pensions, which do not exceed €13,000. This reform will be introduced over two years and will see up to 22,000 pensioners save up to between €210 and €585 a year. A further 9,000 pension- ers will be completely exempt from paying income tax. €13,000 is equivalent to the highest pen- sion given by the government, but Sciclu- na said no tax will be charged on the first €13,000 of any income from pensions. Up to 9,500 elderly couples on one single pension – who do not qualif y for a tax cut – will benefit from €4 a year increase. 5,000 people who receive a service pen- sion will be given an additional €200 next year. Carer's allowance increase In its drive to have more elderly people living in the communit y, government will be removing the means testing for eligibil- it y to the carer's allowance. Unmarried and unemployed people who care for their parents will see their allow- ance increase by €35 a week to €140 a week. Married people who take in their parents and care for them will be eligible for an al- lowance of €90 a week. A respite service for carers will also be introduced, with assistants being provided to take care of their relatives and give the carers a break. The measure aimed at reducing demand for places at old people's homes will be re- newed, with pensioners who employ full- time or part-time carers get up to €5,200 a year. Disability allowances People with disabilit y who cannot work will see their social benefit rise to the level of the minimum wage. Benefits will also be introduced for am- putees, who do not qualif y for disabilit y al- lowances, will also be eligible for a pension and free medicines. Rents Recognising the increase in rental prices, government will double the subsidy which currently benefits 1,400 families. These families will now receive between €133 and €166, but only against the presentation of a rental contract. Those who choose not to present a rental contract will keep receiv- ing the allowances at the current level i.e. between €66 and €83. Despite this, government aims to double the number of families who receive the al- lowance to 2,800. Increases in social housing rents will be rescinded, returning rents to 2013 levels. A pilot project for 100 tenants will see landlords who enter into a seven-year fixed rate rental agreement with low-income families will have the tax on rental income reduced to 5% from 15%. €8 million fund for past grievances Government will allocate €8 million into a fund which will aim to resolve long-stand- ing grievances by various workers, include those in the old labour corps, those in the former Malta Electricit y Board, retired port workers and policemen demanding pay- ment for overtime worked over the years. Justice Prosecution moves from police to AG AS of next year, prosecutions will be handled by the Attorney Gen- eral's office rather than the police while government also plans to introduce a number of reforms in court. These include an online registry for companies and individuals who are declared insolvent and more ju- dicial acts can be presented online. Moreover three new courtrooms will be opened, bringing the num- ber of halls to 27. Local councils to get more funds Following the postponement of local council elections which were planned for the next two years, government will redirect the saved money to councils. Moreover, councils can apply for funds made available by the Plan- ning Authority, which cover up to 70% of projects aimed at improving localities. Parliamentary scrutiny for public appointments Taking up one of the opposition's proposals in the PN's good govern- ance plan, appointments of chair- persons of regulatory entities and ambassadors will undergo Parlia- mentary scrutiny. Injury compensation for public service employees A compensation scheme which was initially intended for police officers and members for other disciplined corps who suffer an injury at work will be extended for all public service employees or their heirs.