Social security costs up 13 per cent

Expenditure on social security benefits rose by 13.1 per cent during the first six months of this year, driven mainly by outlays on retirement pensions, contributory bonuses and children's allow-ances, the National Statistics Office said.

That expenditure amounted to €332.1 million, an increase of €38.5 million compared to the same period last year. This rise reflected higher outlays of €27.1 million and €11.4 million on contributory and non-contributory benefits respectively.

The increase in contributory benefits was essentially the result of an €18.8 million growth in retirement pensions, which amounted to €154.6 million.

This rise was primarily underpinned by additional outlays amounting to €12.3 million on the two-thirds pension, in part reflecting a rise in the number of beneficiaries. Pensions in respect of invalidity increased as did benefits relating to industrial injuries. Pensions in respect of widowhood went up by €1.9 million while the Contributory Bonus increased by €3.7 million.

Non-contributory benefits went up by €11.4 million over the same period last year.

Within this category there was an €8.5 million rise in Children's Allowances resulting from a one-time payment to new beneficiaries. This expenditure was made during the first quarter of the year.

Other increases were recorded under Social Assistance, up by €0.9 million and under the Non-Contributory Bonus, which increased by €1million.