Government spending on social security benefits fell by 1.6 per cent between January and September, amounting to €525.2 million, official statistics show.

Total expenditure on social security benefits dropped by €8.5 million compared to the same period last year, mainly because government spending on contributory benefits decreased to €5.3 million, the National Statistics Office said. Non-contributory benefits slipped by €3.2 million.

Contributory benefits is a system where people who earn a salary pay a weekly contribution while non-contributory benefits are social benefits which act as a safety net, such as children’s allowance, orphans’ allowance or disability pension.

The slide in contributory benefits was the result of a €6.6 million decline in retirement pensions, which amounted to €255.9 million for January and September. Invalidity pensions decreased during the period by €2 million and widowhood pensions increased by €2.3 million.

The decline in non-contributory benefits was mainly due to a €2.6 million decrease in social assistance.