Cabinet approves disability benefits plan worth €104m

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The Cabinet has approved the gradual implementation of the Law on Social Participation, Inclusion and Independent Living for Persons with Disabilities, with the first five support measures expected to take effect in the coming months.

The new legislation aims to modernise and strengthen social services and financial support available to people with disabilities in Cyprus.

Deputy Minister of Social Welfare Klea Papaellina described the decision as a major reform initiative following the law’s unanimous approval by Parliament in April.

First five support measures announced

Under the phased implementation plan, several disability benefits will increase, and eligibility will expand.

The vehicle purchase grant will rise by 50%, increasing from €3,500 to €5,250, from €4,500 to €6,750 and from €9,000 to €13,500 depending on category. Eligibility will also extend to children under 18 and individuals aged between 70 and 77 who have received support only once.

Mobility allowance payments will increase by 33%, rising from €75 to €100 and from €150 to €200 per month. The increase will apply retroactively from 1 January 2026, with a lump sum expected for the first six months.

Major changes to care support

From 1 August 2026, a new Personal Assistance and Home Care Allowance will come into force.

Existing disability-related support schemes will merge into the new system, including disability benefits, home care grants and mobility-related assistance. Payments under the unified system will increase by 10%, also with retrospective effect from January.

The reform will additionally remove income and asset criteria for access to the new allowance, while introducing greater flexibility regarding personal care arrangements.

Day centre and support allowances

From 1 September, participation allowances for Day Centres will double from €150 to €300 per month, with payments directed to the centres themselves.

A Support Consumables Allowance will follow from 1 October, integrating existing beneficiaries into a new framework.

€104m additional cost projected

Authorities estimate the additional cost of the reforms at approximately €104 million for the 2026–2028 period.

The plan includes an expansion of eligibility covering around 5,000 additional beneficiaries, with projected costs of €23 million in 2026, €36 million in 2027 and €45 million in 2028.

Mixed reaction from organisations

The Cyprus Confederation of Organisations of the Disabled welcomed the reforms, calling them a significant development and the first major horizontal adjustment of disability support in decades.

However, Cyprus Paraplegics Organisation expressed strong reservations, arguing that the measures do not sufficiently address the real needs of individuals with severe mobility disabilities.

The organisation said rising living costs and poverty risks continue to affect many people with disabilities and called for a review of the measures and broader support mechanisms.


Also read: Pension increase of up to 50% for low-income pensioners
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