Government outlay towards Social Security Benefits rose by €63.2m between January and September – NSO
Spending on Social Security Benefits totalled €816.2m during the first three quarters of 2020, 8.4% higher than the corresponding period in 2019. Both Contributory and NonContributory benefits reported an increase, the former accounting for €59.3m or 93.9%, of the total rise in social outlay.
Government spending towards Contributory Benefits amounted to €670.5m, €14.5m of which covered the COVID19 social benefits. Total Contributory spending rose by 9.7% from the previous year. In addition to the COVID-19 social expenses, higher spending was reported under Pensions in respect of Retirement (€32.8m), Widowhood (€4.8m), Contributory Bonus (€4.7m), Other Benefits (€2.1m) and Pensions in respect of Invalidity (€0.6m). In contrast, lower expenditure was reported under Benefits in respect of Industrial Injuries and Gratuities (€0.1m)
By the end of September, Non-Contributory expenditure reached €145.6m, a 2.7% increase from 2019. Disability Pensions/Allowance registered the highest rise at €1.9m, followed by Old Age Pension (€1.7m), Total InWork Benefit (€1.2m), Child Allowance (€1.1m), Supplementary Allowance (€0.4m) and Non-Contributory Bonus (€0.2m). Conversely, spending towards Total Social Assistance and Medical Assistance declined by €2.6m and €0.1m, respectively.
Between July and September, social benefits expenditure was €19.9m higher than the same period in 2019 and totalled €260.8m. Contributory spending rose by €17.5m, largely the result of €11.7m in additional spending towards pensions in respect of retirement. A €2.4m increase was witnessed under Non-Contributory expenditure.
Social security beneficiaries
During the first three quarters of 2020, the largest number of Contributory beneficiaries was reported under the Two-Thirds Pension (52,595). In comparison to 2019, the Unemployment and Sickness benefits reported the biggest increase (2,896) and decrease (1,851) in recipients, respectively. Furthermore, there were 8,813 individuals who benefitted from the COVID-19 social benefits.
Children’s Allowance reported the highest share of Non-Contributory recipients, with 44,404 families in receipt of the benefit. The same benefit recorded the largest increase (2,790) in beneficiaries, while the highest drop in recipients was witnessed under Supplementary Allowance (713).
Similar developments were recorded during the third quarter of 2020, with the TwoThirds Pension (50,353) and Children’s Allowance (40,994) reporting the largest number of Contributory and Non-Contributory beneficiaries.