A fresh set of proposals places students and young homebuyers at the centre of the Labour Party's policy priorities, with measures aimed at easing financial pressures while encouraging long-term investment in education and property ownership.

Among the pledges put forward by Prime Minister Robert Abela today is a further 15% increase in student stipends, building on previous rises and reinforcing the role of financial support in higher education.

The proposal acknowledges the growing cost of living and the need to ensure that students can focus on their studies without undue financial strain. 

Abela also acknowledged that many students look forward to gaining study experience abroad, at another university or college. Students who pursue educational experiences abroad, such as Erasmus, will receive a grant of €1,000.

The emphasis on education reflects a broader strategy to invest in young people at an early stage, equipping them with both qualifications and international exposure, Abela said. Policymakers argue that such initiatives not only benefit individuals but also strengthen the country's human capital over time.

At the same time, the proposals dedicate significant attention to the challenges faced by first-time buyers, particularly younger individuals attempting to enter the property market, Abela said.

A key change involves increasing the stamp duty exemption threshold from €200,000 to €300,000 for first-time buyers, Abela said. This adjustment is expected to translate into savings of up to €5,000, funds that could instead be directed towards finishing works or furnishing a new home. The move follows the decision to make the reduced stamp duty scheme permanent, signalling a longer-term commitment to supporting new entrants into the housing market.

Further assistance is proposed through enhancements to the existing 10% deposit scheme, Abela said. This initiative, which supports buyers who qualify for a bank loan but struggle to cover the initial deposit, would see the property value cap rise from €250,000 to €300,000. By expanding eligibility, the scheme aims to reach a broader segment of prospective buyers.

In addition, first-time buyers would receive a €1,200 refund to cover ancillary expenses such as notarial fees, registration costs, and property research. Combined with the increased stamp duty exemption, total savings could reach €6,200, offering tangible relief at a critical stage in the purchasing process, Abela said.

Parents of children with disabilities will continue to be taxed at the parental rate until their children reach the age of 23, and in the case of children with severe disabilities, for as long as they continue to care for them, Abela said.

In recent years, the carers' grant for parents of children with severe disabilities was increased from €500 to half the minimum wage - a decision that made a significant difference in the lives of these families, particularly where parents are unable to work due to caregiving responsibilities.

Abela said that the time has now come to strengthen this grant further by doubling it, so that the carers' grant becomes equivalent to the full minimum wage.

It will also be made possible for couples to transfer up to five years of additional paid contributions between them, so that the partner who does not have enough contributions can qualify for the minimum pension, Abela said. 

Those who have already paid the difference will still be able to transfer their excess contributions and improve their pension. By 2027, the reform of widows' pensions will be completed, so that from next year widows will begin receiving the full pension of their deceased spouse.

Widows who were entitled to their own pension but lost it upon becoming widowed, in order to receive the widows' pension, will see their pension increase by 20% as compensation for the pension they forfeited.

On-foot travellers to Gozo - both Maltese and Gozitans - will be travelling for free, Abela said.

These measures would complement existing schemes, including ongoing annual grants and recently introduced initiatives designed to further reduce the financial burden on buyers, the Prime Minister added.