Government spending on social security benefits rose by €79 million in a year because of the impact of COVID-19, figures from the National Statistics Office reveal.

Data shows that spending on social security benefits totalled €1 billion in 2020 - up almost eight percent from the previous year.

Contributory benefits (such as unemployment, sick leave and retirement benefits) accounted for €67.4 million, or 85.3 per cent, of the total rise in social expenditure.

Benefits for COVID-19 related measures amounted to €14.5 million, the NSO said.

Higher spending was also reported under retirement pensions (€39.6 million), €23.1 million of which was the result of a higher number of two-thirds pensioners.

Spending on social security benefits has increased every year. Graph: National Statistics Office

Further increases were registered under pensions in respect of widowhood (€6.6 million), contributory bonus (€5.5 million) and other benefits (€2.7 million).

In contrast, lower expenditure was reported under pensions in respect of invalidity (€1.3 million) and benefits in respect of industrial injuries and gratuities (€0.3 million).

Non-contributory expenditure reached €198.6 million, a 6.2 percent rise from comparison to 2019. The largest increases were registered under disability pensions/allowance and old age pension (both €4.4 million).

Higher outlay was also reported under child allowance (€2.3 million), total in-work benefit (€2.1 million), supplementary allowance and non-contributory bonus (both €0.6 million).

Conversely, spending towards total social assistance declined by €2.7 million.