Government social security spending rises to €946.1 million in first half of 2026

Government expenditure on social security benefits reached €946.1 million during the first six months of 2026, an increase of €88.3 million, or 10.3 per cent, compared to the same period last year, according to new figures published by the National Statistics Office (NSO).

Between January and June 2026, spending on contributory benefits totalled €732.1 million, up 9.5 per cent year-on-year, while expenditure on non-contributory benefits rose by 13.2 per cent to €214 million. The largest increase among contributory benefits was recorded in retirement pensions, which rose by €42.2 million, driven mainly by a €53.8 million increase in Two-Thirds Pension outlay. Further increases were registered in widowhood pensions, contributory bonuses, other benefits, deficiency contributory bonuses and invalidity pensions.

On the non-contributory side, Child Allowance recorded the largest increase in expenditure, rising by €9 million. According to the NSO, this reflected the introduction of new grants for families with children in Years 10 and 11, which accounted for €4.2 million, alongside higher spending on the Additional Cost of Living Adjustment (€4.5 million) and Assistance to Help the Elderly Live Independently (€4.3 million). By contrast, expenditure on Total Social Assistance and Medical Assistance declined marginally.

The number of Two-Thirds pension recipients increased to 64,537 during the first half of the year, representing an additional 4,031 beneficiaries compared to 2025 and marking the largest increase among contributory benefits. Meanwhile, recipients of the Increased National Minimum Pension fell by 1,636.

Among non-contributory benefits, the Additional Cost of Living Adjustment remained the largest scheme by number of recipients, reaching 101,270 households, up by 4,133 compared to the previous year. The largest decline in beneficiaries was recorded under the In-Work Benefit, with 1,078 fewer recipients than in the corresponding period of 2025.