Cabinet on Wednesday approved a 10% increase in the rent allowance paid to 4500 beneficiaries, effective from January 1.
The money will be covered by savings in next year’s budget of the Interior Ministry.
Deputy government spokeswoman Klelia Vasiliou said that together with a previous increase of 15% approved earlier this year, beneficiaries will see their rent allowance rise by a total of 25%.
The rent allowance varies depending on the composition of the family and the gross annual household income.
The decision comes days after the government came under fire in the House Interior Committee for not doing enough to protect vulnerable groups in the face of spiralling rents, particularly in Limassol.