GozoNews.Com

Expenditure on social security benefits rose by 19.2 per cent during the first three months of 2008, driven mainly by outlays on pensions in respect of retirement, pensions in respect of widowhood and children’s allowances.

Total expenditure on social security benefits amounted to €174.0 million during the first three months of 2008, up by €28.0 million over the same period last year. This reflected mainly higher expenditure on contributory benefits amounting to €18.1 million. At the same time non-contributory benefits increased by €9.9 million.

The increase in contributory benefits was essentially the result of a €7.6 million growth in pensions in respect of retirement, which amounted to €82.7 million during the first three months of 2008. This increase was primarily underpinned by outlays on the twothirds pension, in part reflecting a rise in the number of beneficiaries.

Pensions in respect of invalidity declined marginally during the period under review, while benefits relating to industrial injuries edged up. Pensions in respect of widowhood increased by €7.3 million because during the reference period four payments (instead of three) were affected. Contributory Bonus increased by €3.3 million reflecting the introduction of a one-time payment of €3.0 million due to the cost of living adjustment.

Non-contributory benefits increased by €9.9 million over the same period in 2007. Within this category there was a €6.8 million rise in Children’s Allowances resulting from a one-time payment of €5.3 million to new beneficiaries. Other increases where recorded under Medical Assistance, up by €1.3 million and the Non-Contributory Bonus which increased by €1.1 million. This latter increase includes a one-time payment of €0.4 million due to the cost of living adjustment.