Caritas Malta’s 2024 Minimum Essential Budget for a Decent Living (MEBDL) has revealed that food expenses dominate the financial burden on low-income families in Malta, consuming up to 56% of their annual budgets.
The report, presented today at the Caritas Community Centre in Hamrun, provides an updated analysis of the minimum financial requirements needed to maintain a basic standard of living for three distinct family types: two adults with two dependent children, a single parent with two dependent children, and a couple aged 65 and over.
The MEBDL 2024 report breaks down the annual costs required for a basic standard of living, highlighting that for a household with two adults and two dependent children, the minimum essential budget is €19,153 per year.
A single parent with two dependent children would need €17,012.83 annually, while a couple aged 65 or older would require €14,731.79.
These budgets cover the “Basic Basket” of essential expenses, which includes categories such as food, clothing, personal care, health, household maintenance, education, transport, and subsidised social housing.
A significant finding of the report is the overwhelming portion of the budget allocated to food expenses. For all three family types, food costs account for between 30% and 56% of the total budget, underscoring the substantial financial strain that basic nutrition places on low-income households in Malta.
This high percentage highlights the difficulty these families face in meeting their most basic needs.
In addition to the Basic Basket, the report outlines an “Augmented Basket,” which includes extra costs for a slightly more comfortable standard of living. This basket covers expenses for activities such as dining out once a month, owning a car, and living in non-subsidised rented accommodation.
While this basket offers a more comfortable lifestyle, it remains within the bounds of a modest, decent life.
The annual costs for this basket rise significantly: a family with two adults and two dependent children would need €33,176.50, a single parent with two children would require €30,724.33, and a couple aged 65 and over would need €26,556.29.
The 2024 MEBDL also considers evolving lifestyle trends by introducing new elements, such as occasional costs for ordering snacks to eat at home and pet care. Additionally, a supplementary study examined the one-time and recurring costs for families with a baby or young children, though these findings were not included in the primary baskets.
A supplementary section of the report addresses the specific needs of households with an infant or toddler, providing detailed costs for both one-off and recurrent expenses. The estimated expenses are as follows: One-off expenses amount to €1,838.75 for items like strollers and cribs.
Supplements for the mother during and after pregnancy are estimated at €253.95. Recurrent monthly basic expenses for a breastfeeding mother are calculated at €442.50, while for a non-breastfeeding mother, they are €510.00. The basic infant/toddler wardrobe is estimated to cost €269.00.
The research, conducted between February and May 2024, involved a comprehensive review of local and European literature on wellbeing, poverty assessment, and income inequality. The study also included consultations with experts across various sectors. The final baskets were designed with a focus on protecting health and respecting environmental resources.
The MEBDL 2024 report not only provides financial data but also includes 31 recommendations aimed at shaping policy, initiatives, education, and research. These recommendations are designed to promote social justice, economic equality, and a sustainable, dignified standard of living for all in Malta.
Recommendations include improving the cost of living allowance, promoting financial literacy, affordable housing and raising the poverty benchmark.
The report is available here.