Over half of single-parent families (52.6 per cent) on a low income, some 2,418 people in total, have an income below that required to purchase the basket of items considered the minimum necessary for a decent standard of living, according to a study published on Friday.

The study, compiled by Caritas, emphasises that this group needs immediate attention.

The study has also identified that 3.3 per cent of families comprised of two adults and two children, or 2,363 people, have an income below that required for the basket of necessities, and this also applies to 8.1 per cent of the people included in the study aged over 65.

A total of 6,316 people declare that their income is insufficient to enable them to purchase the items in the fairly frugal basket, and. this is corroborated by statistics in the 2008 Household Budgetary Survey.

It is a fact that people in low-paid jobs do not always declare their earnings. Nevertheless, the report’s findings are very significant and can serve as a starting point for further discussion and further studies, especially to compare the minimum essential budget with actual consumption patterns.

The study, entitled: A Minimum Budget for a Decent Living, focuses on the three low-income categories: (a) two adults and two dependent children, (b) a single parent and two children and (c) an elderly couple.

From the minimum estimated cost of the items considered essential, it is apparent that low-income families are struggling to make ends meet, even taking account of the subsidies and free food provided under the food aid scheme.

The people included in the study do not own a car or accommodation. In fact, the study assumes that they are entitled to a pink card (for medication), receive provisions under the food aid scheme, live in government-owned property with a subsidised rent and receive energy vouchers.

It is therefore proposed that the minimum wage should rise by 13.8 per cent, from €158.11 per week to €180 per week.

The study was prepared by a multi-disciplinary team including Leonid McKay, who has a degree in sociology, Caritas PRO Joe Sammut, Economist Karm Farrugia and Dr Suzanne Piscopo, a nutrition, family and consumer studies specialist.

The report is a follow-up to a similar one prepared in 2010. However, while that one was based on current consumption according to national statistics, a different approach was taken in the latest one, since it has identified the bare minimum people need to live decently.

The study is aimed at policy-makers, especially the ministries responsible for education and social policy, as well as all social partners, unions, employers and NGOs. It is intended to stimulate national debate and encourage policy-makers to establish a minimum benchmark for a decent standard of living.

The price of the items under study reflects market prices in September last year. The study was carried out over a year, starting from January 2011.

The cost of clothing, household goods, maintenance and services was based on the average consumer expenditure of the lowest income quartile, according to the NSO Household Budgetary Survey of 2008 – households earning less than €10,585.

The study focuses on describing a basic minimum standard rather than identifying how much a family should earn.

Making his own observations, Caritas director Victor Grech said the organisation recognises the improvement in social services over the years but unfortunately some people are still falling below the poverty line. Justice and equity demand that the average income of households should allow them to fulfil their family obligations in a worthy manner, without undue stress.

Caritas Malta offers support to people in difficulty with the aim of alleviating poverty and promoting human development and social justice.

The full study and an executive summary are available on www.caritasmalta.org

Recommendations:

Raise the minimum wage from €158.11 to €180 per week

Urgently address the financial situation of single parent families at high risk of poverty

Define an adequate minimum income for people with a household revenue below the minimum essential budget

Strengthen social security benefits for people with a household revenue below the minimum essential budget

Carry out further studies to compare the minimum essential budgets with the actual consumption patterns of the three household types

Develop a system whereby the state covers at least the NI contributions for those whose income falls below the minimum essential budget

Ensure that entitlement to free medication is reviewed regularly to reflect a fair and accessible system within a sustainable healthcare system

Invest in community level projects for more sustainable and adequate consumption patterns and lifestyles for Maltese families

Nurture the right attitudes and skills in children from a young age towards becoming responsible citizens.

The minimum essential budget per annum for the households under study is estimated at €10,634 for two adults and two children, €8,581 for a lone parent with two children and €6,328 for an elderly couple. During the report’s presentation, economist Karm Farrugia said that if the families studied were to take home some €1,000 more than they do, he assumes, from personal calculation, that this will lift some 2,000 people from the “at risk of poverty” category. This added income will remain in the economy because these people cannot afford to travel abroad, for instance.

The shopping basket

The minimum estimated cost is based on a basket of goods and services assembled using a frugal approach and is comprised of eight basic categories: food, clothing, personal care, health, household goods, maintenance and services, education and leisure, transport and housing.

Special occasions or gifts for children’s birthdays are not included in the frugal basket as it can be argued that parents do not need to spend a lot on gifts but can prepare something themselves, from things they have at home.

The specimen weekly food menu and cost of listed items is very detailed and provides for a healthy diet based on the recommendations of the World Health Organisation and the Health Promotion and Disease Prevention Department.

The weekly cost of food for families of two adults and two children was calculated at €107.14. Lone parent and two-children families need €80.44 per week, while elderly couples have a weekly food bill of €50.28, if they do not have special dietary requirements.

The cost of school uniforms, stationery expenses and school outings, is also taken into consideration.

Meanwhile, the section on footwear takes the cost of a pair each of sandals, trainers, boots, elegant shoes, work or school shoes, flip flops and indoor slippers for every person. It is assumed that shoes last for two years. The price of trainers was calculated at €35 per adult and €25 for children while that of work or school shoes at €40 for adults and €20 for children. The price of boots was said to be €35 for adults and €30 for children.

While the subsidised rent of Housing Authority accommodation amounts to €185 per year, the average rent for private accommodation is €238 per month.