The €1.75 weekly increase 85,000 pensioners will receive as a Cost of Living Adjustment will immediately disappear due the introduction and increase of excise duties on toiletries and soft drinks, The Alliance for the Organization of Pensioners said.

The organization did praise the government’s initiative to create a social budget following its focus on the economy, employment and the reduction in public debt since the start of its legislature, which they claim had left the rich richer and the poor poorer.

The statement pointed to the substantial changes made to supplementary benefits, rental subsidies, and lowered tax rates as measures will help pensioners and their financial position.

The group expressed its regret that the government ignored their pre-budget proposals regarding the national guaranteed minimum pension, the indexation and capping of two-third pensioners, and service pensioners, claiming that all politicians are scared to talk about the subject.

The statement said that these are essential to address poverty and social exclusion. It pointed to a number of cases which have seen a number of Maltese pensioners receive a lower rate than what was promised to them.  It claims that after the government introduced a national minimum wage which came into effect in January 2016, the pension was calculated at 60% of the middle income. This would amount to €147 per week and in the case of a couple it could not be lower than €221. However there are couples who received only €160 per week.

The indexation and capping in pensions are issues that any administration needs to face. The group claimed that if these are not tackled then there is a chance that it would affect the earnings related system and would result in  are two issues any administration needed to face, as if they are not tackled there is a chance that the earnings related system would eventually amount to naught.