Over €400 million spent on social security benefits in first half of 2014

Total social security benefits amounted to €412.3 million during the first six months, a 1.7 per cent increase compared to the corresponding period of 2013, according to the National Statistics Office.

This was due to a €10.9 million increase in expenditure on Non-Contributory Benefits. On the other hand, Contributory Benefits outlay declined by €4.1 million.

Contributory Benefits expenditure totalled €303.5 million by the end of June, down by 1.3 per cent over 2013. This was due to an €11.0 million drop in the Contributory Bonus outlay, as a result of the change in the COLA payment procedure which, starting from this year, is being paid every four weeks instead of as a lump sum at the beginning of the year.

A decrease was also recorded under Other Benefits (€0.3 million). The decrease in Contributory expenses was partially offset by rises in outlay for Pensions in respect of Retirement (€4.6 million), Widowhood (€2.4 million) and Industrial Injuries (€0.1 million).

Non-Contributory Benefits increased by 11.1 per cent in the first six months. A rise in expenditure was recorded under Social Assistance (€3.7 million), Old Age Pension (€2.4 million), Supplementary Assistance (€2.0 million), Disability Pension/Allowance (€1.8 million), Children’s Allowance (€1.4 million) and Medical Assistance (€0.3 million). Non- contributory Bonus outlay decreased by €0.7 million.

In the second quarter, the outlay on social security benefits went up by €11.2 million, to €206.0 million. An increase in expenditure was recorded under both the Contributory (€6.3 million) and Non-Contributory (€5.0 million) categories