Social security spend up 9% for first quarter 2012

Expenditure on social security benefits increased by 9 per cent during the first quarter of 2012, mainly on account of higher expenditure on retirement pensions, contributory bonus and children's allowance.

Between January and March, total expenditure on social security benefits amounted to €206.9 million, up by €17.1 million over the corresponding period last year. This reflected mainly higher expenditure on contributory benefits amounting to €12.5 million. Concurrently non-contributory benefits increased by €4.6 million.

The increase in contributory benefits was essentially the result of a €7.2 million increase in pensions in respect of retirement, which totalled €89.7 million during the first quarter. Pensions in respect of Invalidity declined by €0.5 million during the period under review. Pensions in respect of widowhood edged up by €0.6 million, while the contributory bonus increased by €5.2 million. Marginal increases of less than €0.1 million were registered under other benefits and benefit in respect of industrial injuries and gratuities.

Non-contributory benefits went up by €4.6 million over the corresponding quarter last year. This increase is attributed to a higher outlay of €3.0 million on children's allowance, mainly on account of the €100 increase in the children's allowance flat rate. All other benefits registered an increase, the highest being recorded under social assistance and non-contributory Bonus with €0.8 million and €0.4 million respectively.