Beneficiaries whose income exceeds the eligibility threshold will benefit from a two-year transition in the rent subsidy
New mechanism for the gradual decrease of rent benefit – another Electoral Manifesto pledge implemented within 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 rent assistance all at once, but will benefit from a two-year transition period.
This was announced by the Minister for Accommodation and Lands, Owen Bonnici, who said that this is another Electoral Manifesto promise being implemented within the first 100 days of the Government.
Minister Owen Bonnici said that this change to 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 families’ financial circumstances.
Minister Bonnici said that the Government will continue to review and update the Housing Authority’s schemes so that they continue to reflect today’s economic and social realities and respond effectively to people’s needs. He also explained that, under the new mechanism, beneficiaries will not lose the subsidy immediately when exceeding the income threshold. Instead, the benefit will be gradually reduced over a two-year period.
In the first year, they will continue to receive 50% of the benefit they were receiving previously, while in the second year they will receive 25%. Minister Bonnici said that this will provide greater stability for families during the transition period and prevent those who have improved their financial situation from being immediately penalised.
The Housing Benefit Scheme is one of the Housing Authority’s main instruments for reducing the burden of housing costs on low-income households. 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 apply automatically to eligible beneficiaries, without the need for a new application. The measure is also part of the Housing Authority’s digitalisation process, which is reducing the time between the application and the first payment and reducing red tape for beneficiaries.
The CEO of the Housing Authority, Matthew Zerafa, said that with this new mechanism, families or individuals who are moving forward in their lives will not have their rent benefit stopped abruptly. Instead, this financial assistance will be reduced twice over a two-year period. This will enable those who benefit from this scheme to move forward in life in a sustainable and stable way.