Expenditure on social security benefits rose by 10.5 per cent during the first three months of 2009, driven mainly by outlays on pensions in respect of retirement, and the contributory bonus.

Total expenditure on social security benefits amounted to €192.3 million during the first three months of 2009, up by €18.3 million over the corresponding period last year. This reflected mainly higher expenditure on contributory benefits amounting to €17.2 million, as shown in Table 1. At the same time non-contributory benefits increased by €1.2 million.

The increase in contributory benefits was essentially the result of a €10.8 million growth in pensions in respect of retirement, which amounted to €93.5 million for the first quarter of 2009. This increase was primarily underpinned by outlays on the two-thirds pension, which increased by €8.0 million, reflecting a rise in the number of beneficiaries. Pensions in respect of invalidity declined by €0.7 million during the period under review. Pensions in respect of widowhood increased by €1.6 million whilst the Contributory Bonus increased by €5.1 million.

Non-contributory benefits increased by €1.2 million over the comparative period in 2008. Within this category Children’s Allowance and Social Assistance increased by €0.5 million and a €0.9 million respectively, whilst the Contributory Bonus declined by €0.3 million.

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