Expenditure on social security benefits rose by 6.7 per cent during the first six months of 2009, driven mainly by outlays on pensions in respect of retirement, contributory bonus and pensions in respect of widowhood.

Total expenditure on social security benefits amounted to €354.3 million during the first six months of 2009, up by €22.2 million over the corresponding period last year. This reflected mainly higher expenditure on contributory benefits amounting to €21.1 million. At the same time non-contributory benefits increased by €1.1 million.

The increase in contributory benefits was essentially the result of a €14.8 million growth in pensions in respect of retirement, which amounted to €169.4 million for the first six months of 2009. This increase was primarily underpinned by outlays on the two-thirds pension, in part reflecting a rise in the number of beneficiaries. Pensions in respect of invalidity decreased during the period under review by €1.8 million, and so did benefits relating to industrial injuries. Pensions in respect of widowhood increased by €2.1 million whilst the Contributory Bonus increased by €5.6 million.

Non-contributory benefits increased by €1.1 million over the comparative period in 2008. This increase was mainly attributed to the €1.1 million rise in Social Assistance. The increases in Old Age Pension and Medical Assistance were offset by declines in Supplementary Assistance, Children’s Allowance, Disability Pensions/Allowance and the Non-Contributory Bonus.

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