Social spending down by 4.6% in first quarter 2015

During the first three months of 2015, total social security benefits expenditure decreased by 4.6 per cent, when compared to the first quarter of 2014.

Expenditure on social security benefits totalled €196.9 million in the first quarter of 2015, reflecting a €9.4 million decline from the corresponding quarter in 2014.

The main reason behind this fall was lower outlays on non-contributory benefits by €12.4 million. On the other hand, contributory benefits expenditure increased by €3.0 million.

Contributory benefits outlay amounted to €151.7 million by the end of the first quarter of 2015, a 2.0 per cent increase from the corresponding period in 2014.The higher expenditure was due to a €4.1 million increase in pensions in respect of retirement. Other benefits also increased marginally from €3.2 million in 2014 to €3.4 million in 2015. Conversely, declines were recorded in contributory bonus (€0.9 million), pensions in respect of widowhood (€0.2 million) and pensions in respect of invalidity (€0.2 million).

Expenditure on non-contributory benefits totalled €45.2 million by the end of March of 2015, resulting in a decrease of 21.6 per cent when compared to 2014. This decline was mainly the result of lower children’s allowances by €10.1 million. This reflected the extra payment in the first quarter of 2014.

Decreases in expenditure were also registered under supplementary assistance (€1.9 million) and social assistance (€0.4 million). On the other hand, an increase was registered under old age pensions (€0.2 million).