A new mechanism for gradual reduction in rent benefit – another promise of the Electoral Manifesto implemented in the first 100 days of Government
Beneficiaries whose income exceeds the eligibility threshold, but continue to live as tenants in the private sector, will not lose their aid immediately, but will benefit from a two-year transition period.
This was announced by the Minister for Housing and Lands, Owen Bonnici, who stated that this is another promise from the Electoral Manifesto that is being implemented in the first 100 days of the Government.
Minister Owen Bonnici said that this change in the Housing Benefit Scheme (HBS), also known as the rent subsidy scheme, reflects the Government’s commitment to making assistance fairer, more targeted and sensitive to changes in the financial situation of families.
Minister Bonnici said that the Government will continue to review and update the Housing Authority’s schemes to continue to reflect today’s economic and social realities and respond effectively to people’s needs. He also explained how under the new mechanism, beneficiaries will not lose their subsidy immediately when they exceed the income limit. Instead, the benefit will be gradually reduced over a two-year period.
In the first year, they will continue to receive 50 percent of the benefit they were previously receiving, while in the second year they will receive 25 percent. Minister Bonnici said that this will provide more stability to families during the transition period and avoid those who have improved their financial situation being immediately penalized.
The HBS is one of the Housing Authority’s main instruments to reduce the burden of housing costs on low-income families. In 2025, investment in this scheme reached €10.7 million, with just under 4,000 families benefiting from this subsidy during the year.
The new mechanism will automatically apply to eligible beneficiaries, without the need to make a new application. The measure is also part of the Housing Authority’s digitalisation process, which is reducing the time between application and first payment and reducing bureaucracy for beneficiaries.
The Chief Executive of the Housing Authority, Matthew Zerafa, said that with this new mechanism, those families or individuals who are moving forward in their lives will not have their rent benefit abruptly stopped. Instead, this financial assistance will be reduced twice over a period of two years. Thus, those who benefit from this scheme will be able to move forward in life in a sustainable and stable way.
