Expenditure on social security benefits rose by 10.1 per cent during the first nine months of 2008, driven mainly by outlays on pensions in respect of retirement and children’s allowance. Total expenditure on social security benefits amounted to €471.7 million during the first nine months of 2008, up by €43.3 million over the same period last year. This reflected mainly higher expenditure on contributory benefits amounting to €27.9 million. Noncontributory benefits rose by €15.3 million.

The increase in contributory benefits was essentially the result of a €23.4 million growth in pensions in respect of retirement, which amounted to €223.3 million. 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 declined by €1.7 million during the period under review, while benefits relating to industrial injuries edged marginally up. Pensions in respect of widowhood increased by €2.5 million while Other Benefits went up by €0.2 million.

Non-contributory benefits increased by €15.3 million over the same period in 2007. Most of the increase in this category was attributed to a €9.9 million rise in outlays on Children’s Allowance. Old Age Pension, Disability Pensions/Allowance and Social Assistance rose by €1.6 million, €1.4 million and €1.2 million respectively. All other benefits under the Non-Contributory heading experienced small increases during the first nine months.

Expenditure on social security benefits during the third quarter amounted to €139.5 million, an increase of €4.8 million compared to the September quarter of 2007. This increase was brought about by an increase of €3.9 million in non-contributory benefits. During the same quarter, an increase of €4.6 million in retirement pensions was in part offset by a decline of €3.6 million in pensions in respect of invalidity.

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