Social protection covers all interventions, from public or private bodies, which are aimed at reducing the burden of poverty and vulnerability on households and individuals. These interventions are grouped into eight functions: sickness/healthcare, disability, old age, survivors, family/children, unemployment, housing and social exclusion. The Background Notes provide more details on what social protection encompasses and details of each function.
Table 1.1: Social Protection Expenditure, 2016 to 2021 | |||
Year | €million | % of GDP | % of GNI* |
2016 | 43,125 | 16% | 25% |
2017 | 44,774 | 15% | 24% |
2018 | 46,423 | 14% | 24% |
2019 | 48,894 | 14% | 23% |
2020 | 57,863 | 16% | 29% |
2021 1 | 59,107 | 14% | 25% |
1 Preliminary Data |
Social protection expenditure in 2021[1] amounted to €59.1 billion which represents 14% of Gross Domestic Product (GDP) or 25% of Modified Gross National Income (GNI*). GNI* is a measure of the size of the Irish economy which, by excluding globalisation effects, can be useful for international comparison. This was an increase of €1.2 billion (2.2%) on 2020.
Social protection is a set of interventions whose objective is to reduce social and economic risk and vulnerability, and to alleviate extreme poverty and deprivation, typically grouped into eight functions - sickness/healthcare, disability, old age, survivors, family/children, unemployment, housing and social exclusion (refer to Background Notes for more detail). Figure 1.1 presents a comparison of 2016 to 2021. This chart excludes administrative costs, which are shown in Table 1.2.
[1] Data for 2021 are still preliminary
Social Exclusion | Survivor | Housing | Disability | Family | Unemployment | Old Age | Sickness | |
2021 | 301 | 1397 | 2241 | 2833 | 4755 | 6104 | 15934 | 23553 |
2020 | 327 | 1329 | 2223 | 2838 | 4715 | 7272 | 15252 | 21945 |
2019 | 340 | 1266 | 1915 | 2680 | 4672 | 2192 | 14980 | 18869 |
2018 | 337 | 1179 | 1756 | 2518 | 4589 | 2470 | 13930 | 17775 |
2017 | 317 | 1149 | 1603 | 2370 | 4488 | 2834 | 13557 | 16601 |
2016 | 304 | 1091 | 1581 | 2222 | 4404 | 3281 | 12721 | 15740 |
Over the series, social protection expenditure has increased annually. In 2020, with the onset of the COVID-19 pandemic and introduction of related Government supports, the level of expenditure increased significantly (+18.3% on 2019). The increase in expenditure in 2020 was mainly in the unemployment function (+€5bn on 2019, primarily due to the Pandemic Unemployment Payment (PUP) and the sickness function (+€3bn on 2019 on health related costs). The level of expenditure was similar in 2021 with a year-on-year increase of €1.2 billion. However, looking at the spending by function, the increase in expenditure is predominantly in the sickness function (+€1.6bn on 2020) and old age function (+€0.7bn on 2020). On the other hand, there was a decrease in the unemployment function (-€1.2bn on 2020) largely due to a reduction in PUP as public health restrictions were relaxed and people returned to work. Over the period, expenditure on sickness and old age functions represented the largest proportion of expenditure at approximately two-thirds.
By convention, the European System of Social Protection Expenditure Statistics (ESSPROS) organises data not only by function but also by “scheme”. ESSPROS defines a scheme as a distinct body of rules, supported by one or more institutional units, governing the provision of social benefits and their financing. Schemes are specific to each country while the functions enable comparison across countries and time.
In Ireland, social protection receipts and expenditure are organised into seven schemes: -
See background notes for more information on the data sources for and coverage of these schemes. By structuring the data by scheme, an analysis of receipts that fund social protection expenditure is made possible.
Social protection expenditure in Ireland is primarily funded either by Government or by social contributions. The largest source of financing is general revenue from the Government, i.e. Exchequer funding. This accounted for 63% of scheme receipts in 2021. However, this can vary across schemes with Department of Social Protection (DSP) Voted expenditure fully funded by Government while Government Employment is just 15% Government funded.
Social contributions cover 36% of receipts. This can be further sub-divided by:
Other receipts represent a very small proportion of receipts of schemes at just over 1%.
Table 1.2, Figure 1.2 and Figure 1.3 present data on the receipts and expenditure of social protection schemes in Ireland in 2021.
Expenditure on Social Benefits in Ireland by Type of Risk, 2021 | |
Social Contributions by Households | 11 |
Social Contributions by Self-Employed | 1.2 |
Government General Revenue | 62.66 |
Social Contributions by Employers | 23.97 |
Other Receipts | 1.173 |
Table 1.2: Receipts and expenditure of social protection in Ireland, 2021 | €million | |||||||||||||||
Scheme | Housing | Private Occupational Pensions | DSP1 Voted Expenditure | Public Health | Government Employment | Social Insurance Fund | Child Protection | Total | ||||||||
Receipts by Type | ||||||||||||||||
Social Contributions by Employers | 3,860 | 2,630 | 7,905 | 14,395 | ||||||||||||
Social Contributions by Households | 1,849 | 1,582 | 3,172 | 6,603 | ||||||||||||
Social Contributions by Self-Employed | 720 | 720 | ||||||||||||||
Government General Revenue | 2,057 | 10,398 | 20,986 | 732 | 2,610 | 840 | 37,622 | |||||||||
Other Receipts | 60 | 626 | 16 | 0 | 3 | 704 | ||||||||||
Total Receipts | 2,117 | 6,335 | 10,398 | 21,001 | 4,944 | 14,408 | 842 | 60,045 | ||||||||
Expenditure by Type | ||||||||||||||||
Administration costs | 1,203 | 543 | 244 | 1,990 | ||||||||||||
Social benefits | 2,117 | 3,727 | 9,855 | 21,001 | 4,944 | 14,631 | 842 | 57,117 | ||||||||
Non Means-tested Cash benefits | 3,727 | 2,296 | 8 | 4,944 | 14,192 | 118 | 25,285 | |||||||||
Non Means-tested Benefits in kind | 205 | 18,423 | 318 | 725 | 19,670 | |||||||||||
Means-tested Cash benefits | 6,959 | 11 | 6,971 | |||||||||||||
Means-tested Benefits in kind | 2,117 | 394 | 2,559 | 120 | 5,191 | |||||||||||
Total Social Protection Expenditure | 2,117 | 4,929 | 10,398 | 21,001 | 4,944 | 14,875 | 842 | 59,107 | ||||||||
1 DSP: Department of Social Protection |
Social Protection expenditure is made up of administrative costs and expenditure on social benefits. Social benefits consist of transfers to households and individuals to relieve them of the burden of a defined set of risks or needs as categorised into the eight functions. These can be "in cash", for example, the payment of unemployment benefits and pensions or "in kind", for example, health care services free at the point of delivery. Non-means-tested cash benefits account for the largest proportion (43%) of social protection expenditure, followed by non-means-tested benefits-in-kind (33%). Means-tested benefits (i.e. benefits that are explicitly or implicitly conditional on the beneficiary’s income and/or wealth falling below a specified level), both cash and in-kind, accounted for 21% of expenditure. Administration costs account for 3% of expenditure.
Types of Social Protection Expenditure in Ireland, 2021 | |
Non Means -tested Cash benefits | 43 |
Non Means-tested Benefits in kind | 33 |
Means -tested Cash benefits | 12 |
Means -tested Benefits in kind | 9 |
Administration | 3 |
The Public Health scheme is the largest scheme in terms of expenditure (€21bn or 35.5% of total), followed by the Social Insurance Fund (€14.9bn or 25.2%), DSP Voted Expenditure (€10.4bn or 17.6%), Government Employment (€4.9bn or 8.4%) and Private Occupational Pensions (€4.9bn or 8.3%). The remaining two schemes are small in comparison; the housing schemes accounts for €2.1bn or 3.6% of expenditure and the Child Protection scheme €842m or 1.4% of expenditure.
Table 1.3 and Figure 1.4 present data on social protection schemes by function in 2021 in Ireland. The sickness function accounts for the largest proportion of expenditure on social benefits (€23.6bn or 41%) and, unsurprisingly, the majority of this expenditure falls under the Public Health scheme (€21bn). However, other schemes provide protection benefits within the sickness function such as the government employment scheme in the form of paid sick leave.
The old age function is the next largest category of expenditure at €15.9bn or 28% and is mainly financed via the Social Insurance Fund (€7.5bn - the contributory state pension being the biggest part). A further €3.6bn comes from Private Occupational Pensions and a similar amount, €3.5bn, from public sector pensions.
The unemployment function was the third largest category of expenditure at €6.1bn, the majority (€4.4bn) of which falls under the Social Insurance Fund and related predominantly to the PUP. For reference, in 2019 prior to COVID-19 and the implementation of PUP, unemployment expenditure was €2.2bn.
The family and children function follows unemployment, accounting for €4.8bn or 8% of expenditure on social benefits. The majority of this expenditure is provided by the DSP Voted Expenditure (€3.4bn), over half of which relates to child benefit payments. Social protection benefits in relation to family and children are also provided by the Social Insurance Fund and the Government Employment Scheme in relation to parental benefits and paid maternity and paternity leave.
The majority of social benefits protecting against disability fall under the DSP Voted Expenditure and predominantly relate to the payment of Disability Allowance. The payment of the Invalidity Pension accounts for the majority of protection against disability under the Social Insurance Fund.
In the context of social benefit expenditure on housing, this primarily relates to the provision of social housing by Local Authorities and Approved Housing Bodies, and RAS and HAP[2] payments.
Social Exclusion not elsewhere classified accounts for less than 1% of expenditure on social protection benefits.
[2] RAS: Rental Accommodation Scheme, HAP: Housing Assistance Payment
Table 1.3: Social proteciton schemes by function, 2021 | €million | |||||||
Housing | Private Occupational Pensions | DSP Voted Expenditure | Public Health | Government Employment | Social Insurance Fund | Child Protection | Total | |
Expenditure by Function | ||||||||
Sickness | 1,149 | 20,980 | 550 | 874 | 23,553 | |||
Disability | 1,923 | 19 | 890 | 2,833 | ||||
Old Age | 3,595 | 1,275 | 3,524 | 7,539 | 15,934 | |||
Survivors | 131 | 48 | 707 | 511 | 1,397 | |||
Family & Children | 3,397 | 162 | 354 | 842 | 4,755 | |||
Unemployment | 1,710 | 4,394 | 6,104 | |||||
Housing | 2,117 | 123 | 2,241 | |||||
Social Exclusion | 230 | 2 | 69 | 301 | ||||
Total Social Benefits | 2,117 | 3,727 | 9,855 | 21,001 | 4,944 | 14,631 | 842 | 57,117 |
Table 1.3: Social proteciton schemes by function, 2021 | €million | |||||||
Housing | Private Occupational Pensions | DSP Voted Expenditure | Public Health | Government Employment | Social Insurance Fund | Child Protection | Total | |
Expenditure by Function | ||||||||
Sickness | 1,149 | 20,980 | 550 | 874 | 23,553 | |||
Disability | 1,923 | 19 | 890 | 2,833 | ||||
Old Age | 3,595 | 1,275 | 3,524 | 7,539 | 15,934 | |||
Survivors | 131 | 48 | 707 | 511 | 1,397 | |||
Family & Children | 3,397 | 162 | 354 | 842 | 4,755 | |||
Unemployment | 1,710 | 4,394 | 6,104 | |||||
Housing | 2,117 | 123 | 2,241 | |||||
Social Exclusion | 230 | 2 | 69 | 301 | ||||
Total Social Benefits | 2,117 | 3,727 | 9,855 | 21,001 | 4,944 | 14,631 | 842 | 57,117 |
Table 1.3: Social proteciton schemes by function, 2021 | €million | |||||||
Housing | Private Occupational Pensions | DSP Voted Expenditure | Public Health | Government Employment | Social Insurance Fund | Child Protection | Total | |
Expenditure by Function | ||||||||
Sickness | 1,149 | 20,980 | 550 | 874 | 23,553 | |||
Disability | 1,923 | 19 | 890 | 2,833 | ||||
Old Age | 3,595 | 1,275 | 3,524 | 7,539 | 15,934 | |||
Survivors | 131 | 48 | 707 | 511 | 1,397 | |||
Family & Children | 3,397 | 162 | 354 | 842 | 4,755 | |||
Unemployment | 1,710 | 4,394 | 6,104 | |||||
Housing | 2,117 | 123 | 2,241 | |||||
Social Exclusion | 230 | 2 | 69 | 301 | ||||
Total Social Benefits | 2,117 | 3,727 | 9,855 | 21,001 | 4,944 | 14,631 | 842 | 57,117 |
Sickness & Disability | Old Age & Survivors | Family & Children | Unemployment | Housing & Social Exclusion | |
Public Health | 20999 | 0 | 0 | 0 | 2 |
Social Insurance Fund | 1764 | 8050 | 354 | 4394 | 69 |
DSP Voted Expenditure | 3072 | 1323 | 3397 | 1710 | 353 |
Government Employment | 550 | 4231 | 162 | 0 | 0 |
Private Occupational Pensions | 0 | 3727 | 0 | 0 | 0 |
Housing | 0 | 0 | 0 | 0 | 2117 |
Child Protection | 0 | 0 | 842 | 0 | 0 |
Data on Social Protection expenditure are collected under the 'European System of integrated Social Protection Statistics' programme (ESSPROS) which facilitates an international comparison of data on the expenditure and receipts of social protection within European countries (see Background Notes). At the time of publication, 2020 was the latest year for which there was fully comparable data for all EU Member States. Member States report provisional data for 2021 at this time and this is included when available.
Figure 1.4 presents data on social benefits expenditure per inhabitant in EU Member States for the years 2019, 2020 and 2021. The average expenditure on social benefits per in habitant for European Union 27 Member States for 2019 was €8,416 which rose by over 8% to €9,105 in 2020. This was the largest increase in the preceding 10 years for which the average increase was 2.4% and more than likely reflects social protection interventions by Member States during the COVID-19 pandemic.
Ireland spent €11,348 per person on social protection in 2021 which is marginally up on the €11,213 spent in 2020.
Seventeen Member States reported an increase on social protection benefits greater than the EU average with the largest increase reported by Malta and Cyprus at 26%. Ireland reported the fourth largest increase in social protection benefits at 18%. Most countries maintained this level of social protection benefits during 2021 with only Luxembourg reducing expenditure on social benefits at minus one percent. Four countries reported significant increase in social protection benefits in 2021 – Croatia (10%), Czechia (11%), Bulgaria (17%) and Latvia (24%).
Luxembourg has by far the largest expenditure on social protection benefits per capita at over €24,000 per inhabitant in 2020 and 2021. Bulgaria has the lowest expenditure per inhabitant at less than €2,000 per inhabitant in 2020 and 2021.
2019 | 2020 | 2021 | |
Luxembourg | 21519.63 | 24439.13 | 24277.7811906309 |
Denmark | 16150.01 | 16876.66 | 17210.0549305915 |
Finland | 12842.9 | 13506.55 | 13720.813051106 |
Austria | 12793.53 | 14182.41 | 14415.8925956004 |
Netherlands | 12626.21 | 13395.52 | 13869.5824866464 |
Sweden | 12595.57 | 13343.13 | 14242.2185502618 |
Germany | 12085.79 | 12970.48 | 13408.5497395683 |
Belgium | 11372.86 | 12446.24 | 12646.0240670366 |
France | 11298.55 | 12042.62 | 12304.8526669488 |
Ireland | 9507.48 | 11213.33 | 11348.1556833523 |
Italy | 8501.84 | 9275.87 | 9483.32174696024 |
EU 27 Countries | 8416.32 | 9105.48 | 0 |
Spain | 6266.39 | 6980.01 | 7153.16363444636 |
Slovenia | 5046.61 | 5730.82 | 6223.317305471 |
Portugal | 4808.95 | 5141.9 | 5341.48923700554 |
Cyprus | 4622.83 | 5811.91 | 5918.79212222721 |
Greece | 4305.07 | 4497.68 | 0 |
Malta | 4045.53 | 5088.04 | 5241.58571439591 |
Czechia | 3857.89 | 4306.99 | 4791.35884130574 |
Estonia | 3408.42 | 3902.84 | 3959.89426957951 |
Slovakia | 3000.9 | 3265.91 | 0 |
Poland | 2894.56 | 3237.34 | 3380.03396967082 |
Croatia | 2850.09 | 2956.24 | 3238.57908938677 |
Lithuania | 2818.66 | 3398.55 | 3535.77624418969 |
Latvia | 2460.14 | 2727.09 | 3372.25158318696 |
Hungary | 2450.03 | 2538.35 | 2746.20450674352 |
Romania | 1728.11 | 1940.93 | 0 |
Bulgaria | 1411.61 | 1616.66 | 1888.29804239713 |
The impact of the COVID-19 pandemic is clearly illustrated in the change in unemployment function expenditure between 2019 and 2020. In 2019, the unemployment function amounted €1.7 trillion among the EU 27 Members States. This rose by 77% to almost €3 trillion in 2020. The increase on expenditure varied considerably across countries, from 1,661% in Malta to just 15% in Denmark.
X-axis label | Unemployment Function |
---|---|
Cyprus | 305 |
Estonia | 241 |
Romania | 239 |
Ireland | 232 |
Slovenia | 218 |
Poland | 215 |
Luxembourg | 174 |
Lithuania | 152 |
Austria | 131 |
Portugal | 120 |
Czechia | 114 |
Spain | 89 |
Germany | 82 |
Italy | 79 |
Belgium | 79 |
EU 27 Countries | 77 |
Slovakia | 68 |
Latvia | 64 |
France | 61 |
Hungary | 61 |
Croatia | 55 |
Bulgaria | 48 |
Netherlands | 40 |
Greece | 35 |
Finland | 35 |
Sweden | 34 |
Denmark | 15 |
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