€9.4 million increase in social security benefits outlay

During the first nine months of 2015, the outlay on social security benefits increased by €9.4 million when compared with last year, mostly due to higher outlay on retirement pensions.

Total social security benefits amounted to €648.0 million during the first three quarters of 2015, resulting in a 1.5 per cent increase when compared to the corresponding period in 2014. The increase in expenditure was due to a €15.6 million rise in Contributory Benefits outlay. On the other hand, Non-Contributory Benefits expenditure decreased by €6.1 million.

Contributory Benefits outlay amounted to €496.0 million by the end of September, 3.2 per cent higher than 2014. The rise in outlay was mainly due to a €14.0 million rise in Pensions in respect of Retirement. Furthermore, other increases were recorded under Pensions in respect of Widowhood (€1.3 million), Contributory Bonus (€1.1 million) and Other Benefits (€0.1 million).

Conversely, a decline of €0.9 million was registered in Pensions in respect of Invalidity.

Non-Contributory Benefits decreased by 3.9 per cent during the first nine months of 2015, totalling €152.1 million.

The main reason behind this decrease was a €9.3 million decline in Children’s Allowance, due to an extra payment being effected during the first three quarters of 2014. Further decreases in expenditure were registered under Social Assistance (€2.8 million), Supplementary Assistance (€1.8 million), Medical Assistance (€0.5million) and Non-Contributory Bonus (€0.5 million).

On the other hand, increases were registered under Disability (€0.7 million) and Old Age Pensions (€0.2 million). Additionally, in September there was also a first-time payment of the Child Supplementary Benefit which is payable to low-income families with children under the age of twenty-three. The total amount of this benefit outlay was €7.7 million.

In the third quarter, the outlay on social security benefits increased by €13.9 million, to €240.2 million. A rise in outlay was recorded for both Contributory Benefits (€6.8 million) and Non-Contributory Benefits (€7.1 million). The rise in Contributory Benefits was due to a €6.0 million increase in Pensions in respect of Retirement, while the increase in Non- Contributory Benefits was the result of the payment of the Child Supplementary Benefit.