Expenditure on social security benefits rose by 9.2 per cent during 2008, driven mainly by outlays on pensions in respect of retirement and children’s allowance.
Total expenditure on social security benefits during 2008 amounted to €624.8 million, up by €52.5 million over the previous year. This reflected higher expenditure of €37.8 million on contributory benefit. Non-contributory benefits rose by €14.7 million. In 2008 the outlay on social security benefits made up 11.0 per cent of the GDP at current market prices, an increase of 0.5 percentage points over 2007.
The increase in contributory benefits was essentially the result of a €31.8 million growth in pensions in respect of retirement, which amounted to €294.0 million. This increase was underpinned by the outlay on the two-thirds pension, in part reflecting a rise in the number of beneficiaries. Pensions in respect of invalidity declined by €2.3 million during the period under review, while benefits relating to industrial injuries edged up 3.0 per cent. Pensions in respect of widowhood increased by €3.8 million while the Other Benefits went up by €0.5 million.
Non-contributory benefits increased by €14.7 million over the outlay in 2007. Most of the increase in this category was attributed to an €11.1 million rise in outlays on Children’s Allowance. Old Age Pension, Disability Pensions/Allowance, Social Assistance and Medical Assistance rose by €0.4 million, €0.9 million, €1.1 million and €0.3 million respectively. During the period under review Supplementary Assistance declined by €0.2 million.
Expenditure on social security benefits during the fourth quarter last year amounted to €153.2 million, an increase of €9.3 million compared to the December quarter of 2007. This increase was brought about by an increase of €9.9 million in contributory benefits, as non-contributory benefits declined by €0.6 million or 1.6 per cent.