Government spending on social benefits up by 19.2%

Government spending on social security benefits rose by almost a fifth in the first quarter of this year, driven by higher payments on pensions and children's allowances, the National Statistics Office said today.

Total expenditure on social security benefits amounted to €174.0 million during the first three months of 2008, up by €28.0 million over the same period last year.

" This reflected mainly higher expenditure on contributory benefits amounting to €18.1 million. At the same time non-contributory benefits increased by €9.9 million," the NSO said.

The increase in contributory benefits was essentially the result of a €7.6 million growth in retirement pensions, which amounted to €82.7 million during the first three months of 2008.

Invalidity pensions declined marginally, while benefits relating to industrial injuries edged up. Widows' pensions increased by €7.3 million.

Non-contributory benefits increased by €9.9 million over the same period in 2007. That included a €6.8 million rise in Children's Allowances resulting from a one-time payment of €5.3 million to new beneficiaries. Other increases were recorded under Medical Assistance, up by €1.3 million and the Non-Contributory Bonus which increased by €1.1 million. This latter increase includes a one-time payment of €0.4 million due to the cost of living adjustment.