Government spending on social security benefits decreased by 3.1 per cent during the first half of this year, mainly on account of lower expenditure on retirement pensions, the NSO said today.

Total expenditure on social benefits amounted to €365.0 million, down by €11.7 million over the corresponding period last year.

Spending on contributory benefits was down by €9.1 million while spending on non-contributory benefits declined by €2.6 million.

"The declines are attributed to an extra payment during the first half of 2010 compared to the corresponding period in 2011," the NSO explained.

The decrease in contributory benefits was, essentially, a €10.7 million decline in
retirement pensions, which amounted to €170.2 million for the first six months
this year. Spending on invalidity pensions decreased during the period under review by €1.4 million. Widows pensions went up by €2.0 million, while the Contributory Bonus added €1.5 million.

Non-Contributory Benefits declined by €2.6 million over the comparative period last year. The decrease was mainly attributed to the €2.5 million decline in Social Assistance. A decline in Children's Allowance was offset by increases in Old Age Pensions, Disability Pensions/Allowance, Supplementary Assistance and the Non-Contributory Bonus.