€376.7 million spent on social benefits in six months

Expenditure on social security benefits rose by 6.3 per cent during the first half of this year, driven mainly by outlays on retirement pensions, contributory bonus, social assistance and widows' pensions, the NSO said.

Total expenditure on social security benefits amounted to €376.7 million during the first six months of 2010, up by €22.4 million over the corresponding period last year. This reflected mainly higher expenditure on contributory benefits amounting to €19.1 million.

Concurrently, non-contributory benefits increased by €3.3 million. The increase in contributory benefits was essentially the result of an €11.4 million growth in pensions in respect of retirement, which amounted to €180.9 million for the first six months of 2010. This increase was underpinned by an outlay on the two-thirds pension, in part reflecting a rise in the number of beneficiaries.

Expenditure on pensions in respect of Invalidity decreased during the period under review, by €1.2 million, while that on Widowhood Pensions rose by €2.0 million. The contributory bonus went up by €7.0 million in the period under review. Non-contributory benefits increased by €3.3 million over the comparative period in 2009. This was mainly attributable to the €2.1 million rise in social assistance.

Declines in children's allowance and supplementary assistance were offset by larger amounts on old age pensions, disability pensions/allowance, medical assistance and the non-contributory bonus. Expenditure on social security benefits during the second quarter amounted to €169.2 million, an increase of €7.3 million compared to the 2009 June quarter. This was made up of €6.3 million in contributory benefits and €0.9 million in non-contributory benefits.

The increase in contributory benefits was driven by €5.3 million in the Two-thirds Pension, while that in Non-Contributory Benefits was mainly due to a larger outlay on supplementary assistance, of €0.9 million.