Nearly a quarter of Government spending is on Social Welfare payments, says new report

Heather Humphreys: While the report relates to social welfare schemes in 2019 before the Covid-19 pandemic, we must also bear in mind the profound impact that the pandemic has had. File picture: Julien Behal/PA

Nearly a quarter of all Government expenditure is spent on welfare payments, according to the latest Social Welfare Statistics Annual Report.

Some €20.9bn was spent on the payments last year and represent 24% of general Government expenditure and some 6% of GDP

In addition, the report notes the percentage of the social welfare budget spent on pensions increased from 28% in 2010 to 40% last year.

There were 650,000 recipients of the State pension in 2019, with expenditure totalling €8.2bn.

Spending on Jobseeker’s Allowance and Jobseeker's Benefit amounted to €2bn in 2019, but this was a reduction of €2.1bn (52%) since 2010.

The figures in the report refer to expenditure, and recipients and beneficiaries of various schemes administered by the Department of Social Protection.

Social Protection Minister Heather Humphreys said: “While the report relates to social welfare schemes in 2019 before the Covid-19 pandemic, we must also bear in mind the profound impact that the pandemic has had.

“The report shows the percentage of the social welfare budget spent on pensions increased to 40% in 2019.

“The public policy and social issues in relation to funding a sustainable and adequate State pension system are complex. That is why this Government will establish a commission on pensions that will report by June 2021.”

The reports notes over €2bn was issued in child benefit payments for 1.2m children and over 1.3m people were in receipt of a weekly social welfare payment in 2019.

There was €4.5bn paid on illness, disability, and caring payments in 2019 with carer’s allowance and disability allowance accounting for €2.6bn of this expenditure.

Approximately €700m was spent on allowances relating to fuel, electricity, gas, telephone support, the TV licence, and free travel.