Social security: spending on pensions down by 0.5 per cent in 2011

Expenditure on social security benefits declined by 0.5 per cent during 2011, mainly on account of lower outlays on pensions in respect of retirebent, pensions in respect of invalidity and social assistance.

Total expenditure on social security Benefits during 2011 amounted to €728.0 million, down by €3.4 million from the previous year. This reflected mainly lower expenditure of €2.1 million on non-contributory benefits.

Contributory benefits declined by €1.3 million.

The declines in both contributory benefits and non-contributory benefits are attributed to an extra payment during the first months of 2010 compared to the corresponding period in 2011. In 2011 the outlay on social security benefits made up 11.4 per cent of the GDP at current market prices, a decrease of 0.5 percentage points over 2010.

Pensions in respect of retirement declined by €2.2 million, and amounted to €367.7 million. This decrease was underpinned by the outlay on retirement pensions, which went down by €6.3 million.

Pensions in respect of invalidity went down €2.8 million during the period under review, while benefits relating to industrial injuries declined by 10.5 per cent. Pensions in respect of widowhood increased by €2.4 million while the other benefits dropped by €0.4 million.

Non-contributory benefits decreased by €2.1 million over the outlay in 2010. Most of the decrease in this category was attributed to drops of €2.4 million in social assistance and €1.3 million in children's Allowance. Old-age pension, disability pensions/allowance, and supplementary assistance added by €0.3 million, €0.3 million, and €0.9 million respectively.

Expenditure on social security benefits during the fourth quarter amounted to €202.7 million, an increase of €5.1 million compared to the December quarter of 2010. This increase was brought about by increases of €4.0 million in contributory benefits and of €1.1 million in non-contributory benefits.