The Anti Poverty Forum expressed its concern about the sharp increase in the cost of living, including drastic increases in the basics necessities which include basic food items and medication. This hike in costs has highly reduced people’s purchasing power, increasing poverty.

In a statement, the Forum said it appreciated the call by the Governor of the Central Bank of Malta that the Government should assist more those who are in vulnerable positions.

The number of people at risk of poverty is on the increase. This is even more so with the inflation increase registered mostly in this year’s 2^nd and 3^rd quarters.

APF Malta said it is of the opinion that:

·         Subsidies are a good short-term solution. However, since they are from public funds, in the long-term they will have an impact on inflation

·         COLA is based on past inflation and not on projections. Therefore, it does not compensate for the present increase in cost of living

·         Although we hear statements in favour of the free market:

o   We query whether the ‘free market’ principle is safeguarding people in poverty.

o   Any incentives and controls are in themselves infringing on the free market principle.

APF Malta recommended that:

·         More longitudinal educational programs and campaigns should be engaged in favour of decent and healthy living. This would include wise spending focusing on needs rather than wants and efficient use of resources.

·         Policies to address poverty should be long-term based, before poverty becomes a normalised way of living.

·         Expand on continued research and studies to explore and expose the real scenario on the effects of inflation on society.

·         The government should expand the social safety net by:

o   Providing adequate medications, as prescribed by medical professionals. The latter tend to recommend the latest and most reliable medications on the market. These are not always supplied by the POYC, and hence patients end up buying medications they find difficult to afford. Pensioners are the cohort that mostly makes up this category.

o   Increasing and strengthening measures to ensure the effectiveness and at the same time, reduce the abuse of systems that are intended to assist those who are at risk of poverty, students and disadvantaged persons. Such measures should incorporate training and working schemes.

o   Ensuring that the consumers are not misled by purposely manipulated advertising and are receiving value for money. Also by limiting abuse of price rises where not necessary.

o   Continuing to subsidise the provision of energy, especially to those who are at risk of poverty. Subsidies should be against means testing, where levels of subsidies should apply, and should be inversely proportional to the individual’s or household’s purchasing power.

The burden that this inflation increase should be shouldered by all, but especially by those who can shoulder more, the forum said.