Expenditure on social security benefits down 1.6%

Total expenditure on social security benefits amounted to €525.2 million during the first nine months of 2011, down by €8.5 million over the corresponding period last year. This reflected mainly lower expenditure on contributory benefits amounting to €5.3 million.

Concurrently non-contributory benefits decreased by €3.2 million. The declines in both contributory benefits and non-contributory benefits are attributed to an extra payment during the first nine months of 2010 compared to the corresponding period this year.

The decrease in contributory benefits was essentially the result of a €6.6 million decline in pensions in respect of retirement, which amounted to €255.9 million for January-September 2011. Pensions in respect of invalidity decreased during the period under review by €2.0 million.

Pensions in respect of widowhood increased by €2.3 million, while the contributory bonus added €1.5 million.

Non-Contributory benefits decreased by €3.2 million over the comparative period in 2010. The decrease was mainly attributed to a €2.6 million decline in social assistance. The decline of €1.6 million in children’s allowance expenditure was in part offset by increases in old age pensions, disability pensions/allowance and the supplementary assistance.

Expenditure on social security benefits during the third quarter amounted to €160.2 million, an increase of €3.3 million compared to the September quarter of 2010. This rise was brought about by an increase of €3.8 million in contributory benefits, which was in part offset by a decline of €0.5 million in non-contributory benefits. The increase in contributory benefits was driven by the additional outlay of €2.8 million in two-thirds pension. The decrease in the non-contributory benefits was mainly due to the decline of €0.7 million registered under children’s allowance expenditure.