Expenditure on social security benefits rose by 6.4 per cent during the first nine months of 2009, driven mainly by outlays on pensions in respect of retirement, contributory bonus and social assistance.

Total expenditure on social security benefits amounted to €502.0 million during the first nine months of 2009, up by €30.3 million over the comparative period last year. This reflected mainly higher expenditure on contributory benefits amounting to €26.8 million. Non-contributory benefits rose by €3.5 million.

The increase in contributory benefits was essentially the result of a €20.5 million growth in pensions in respect of retirement, which amounted to €243.8 million. This increase was primarily underpinned by outlays on the two-thirds pension, in part reflecting a rise in the number of beneficiaries. Pensions in respect of invalidity declined by €2.6 million during the period under review, while benefits relating to industrial injuries declined marginally. Pensions in respect of Widowhood increased by €2.3 million while Other Benefits went up by €1.0 million.

Non-contributory benefits increased by €3.5 million over the corresponding period in 2008. Most of the increase in this category was attributed to a €3.3 million rise in outlays on Social Assistance. Old Age Pension and Medical Assistance rose by €0.5 million and €0.3 million respectively. Children’s Allowance and Supplementary Assistance both declined by €0.4 million and €1.2 million respectively.

Expenditure on social security benefits during the third quarter amounted to €147.7 million, an increase of €8.2 million compared to the September quarter of 2008. This increase was brought about by an increase of €5.7 million in contributory benefits and €2.4 million in non-contributory benefits. The increase in contributory benefits was driven up by €5.2 million in Two-Thirds Pension, whilst the increase in the non-contributory benefits was mainly due to the increase in Supplementary Assistance of €2.2 million.