Social security bill up 6.7 per cent in six months

Rising unemployment and an ageing population have resulted in the government spending 6.7 per cent more on social security benefits in the first six months of this year than it did over the same period last year.

According to the National Statistics Office, expenditure on unemployment benefits increased by almost 67 per cent, reaching €1.28 million.

Meanwhile, retirement pension payments grew by €14.8 million, which amounted to €169.4 million for the first six months of the year.

Total expenditure on social security benefits between January and June amounted to €354.3 million, up by €22.2 million over the corresponding period last year and €60.7 million from the first half of 2007, when spending was €293.6 million.

The NSO said this year's increase reflected mainly higher expenditure on contributory benefits of €21.1 million, while spending on non-contributory benefits increased by €1.1 million. Contributory benefits refer to those payable to people who pay their weekly national insurance contribution.

This increase was primarily underpinned by outlays on the two-thirds pension, in part reflecting a rise in the number of beneficiaries.

Two-thirds pensions are those payable to people who have retired after January 1979 and provide for a pension equivalent to two-thirds of the insured person's pensionable income.

Pensions in respect of invalidity decreased during the period under review by €1.8 million, as did benefits relating to occupational accidents.

Widows' pensions increased by €2.1 million while the contributory bonus increased by €5.6 million.