Ministry disputes auditor general findings on adequacy of social assistance

The Social Policy Ministry has pushed back against conclusions by the National Audit Office that individuals relying on non-contributory social benefits cannot afford a decent standard of living, insisting that the watchdog’s analysis focused on a “very small proportion” of overall social investment.

In a statement reacting to the auditor general’s report, the ministry said the analysis was limited exclusively to non-contributory benefits, specifically social assistance recipients, and did not take into account pensioners, persons with disability, carers, and working families with children who benefit from a broader range of social measures.

“Had the Auditor General extended the analysis to pensioners, persons with disability, carers and working families receiving social benefits, the conclusion would have been that their income today substantially exceeds the required level,” the ministry said.

The ministry stressed that social assistance was never intended to provide a high income but rather to guarantee a minimum basic income for individuals while they are unemployed. It argued that the purpose of such assistance is to serve as a temporary safety net rather than a long-term income replacement.

Despite this, the government said income levels for families on social assistance have increased significantly over the past decade. According to the ministry, a family with two children on social assistance, including additional benefits, receives €6,210 more than in 2013. It added that families facing illness or disability receive substantial additional benefits that push their income beyond the required threshold.

The ministry reiterated that government policy has consistently sought to strengthen social benefits while incentivising able-bodied recipients to enter the workforce. Measures such as free childcare, the tapering of benefits and the In-Work Benefit scheme were cited as key reforms.

As a result, the ministry said, the number of people dependent on social assistance has fallen to a third of 2013 levels.

It also pointed to broader social indicators, claiming that material deprivation among children, adults and the elderly has fallen by more than half over the past 13 years. The number of people unable to afford energy bills and other essential expenses has decreased threefold, it said.

Median household income has risen by 70% since 2013, while investment in pensions and social benefits is projected to more than double between 2013 and 2026.

The ministry said it is committed to strengthening pensions and social benefits in the years ahead, including as part of its long-term Vision Malta 2050 strategy.