A year of social progress rooted in Labour values | Leonid McKay

Leonid McKay, CEO Labour Party

As we reflect on 2025, it is important not only to celebrate Malta’s strong economic performance, but also to underscore the values at the heart of the Labour government—social inclusion and social mobility.

In 2025, government continued to build an inclusive society where everyone—families, carers, persons with disabilities, pensioners and social welfare beneficiaries—is supported to thrive with dignity and opportunity.

One of the most tangible demonstrations of this commitment is the continued expansion of family-focused financial support. Since 2013, investment in family benefits has tripled, reaching approximately €152 million in 2025. This reflects a clear political choice to assist families with children. Beyond the landmark tax cut measure, Budget 2026 further increased children’s allowances and support for children in post-secondary education.

Our approach to in-work benefits remains a cornerstone of social policy. The making work pay strategy continues to evolve, ensuring that work always pays more than reliance on welfare. Over the years, tens of thousands of families benefitted from in-work benefits designed to lift incomes and encourage more and more persons to stay in the labour market. The tapering of benefits strategy, continues to reduce long-term dependence on welfare while supporting transitions into work.

From my experience working with these groups, I can attest to the importance of not only addressing their current disposable income but also breaking the cycle of intergenerational dependency on benefits and, consequently, intergenerational poverty.

Caring beyond words
Equally central to our social agenda is the support for carers—not only beneficiaries of care, but the individuals who provide care every day.

Government has broadened eligibility for the Carer’s Grant, increasing uptake and extending coverage to parents of children with severe disabilities regardless of age restrictions that previously limited access. This year’s measures also ensure that carers accrue social security contributions, safeguarding their own future pensions a step that recognises the full humanity and rights of those who give so much.

Persons with disability have remained a top priority. Beyond fostering access to employment with targeted incentives, the budget increased disability allowances, raised support in line with minimum wage growth, and expanded the child disability supplement giving families and individuals clearer paths to economic participation and social inclusion.

Pensioners retain their position as a mainstay of this administration’s social agenda. Over consecutive Budgets, their disposable incomes have risen through pension increases and tax exemptions. Special attention has been given to widowers and elderly living alone, and crucially, to those disadvantaged by lower national insurance contributions. Adjustments this year have ensured that all retirees live with dignity, closing gaps that existed in pension adequacy over decades.

The government has also invested in non-governmental organisations that deliver vital services at community level. In 2025, around 26 NGOs received approximately €13 million to deliver community-based projects for children, youth and vulnerable adults, including victims of domestic violence. This partnership with social NGOs strengthens social fabric and ensures practical support reaches those who need it most.

The social agenda of 2025 shows a Labour government that does not merely manage an economy, but invests heavily in social mobility. It lifts people up. We have continued to protect the vulnerable, champion inclusion, and ensure opportunity is available to all Maltese and Gozitans.

As we look ahead to 2026, our strategy remains clear: Combining economic strength with social solidarity, building a Malta where growth is shared, dignity is protected, and no one is left behind.