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Social-protection spend now 12% of GDP

The 2023 social-protection spend in Ireland jumped by 7%, or €4.3 billion to a total of €63.5 billion, CSO data shows.

Temporary-protection applicants from Ukraine accounted for the large percentage increase in housing spend, up from €2.7 in 2022 billion to €3.6 billion in 2023.

Spending on sickness/healthcare and old age continued to account for the largest proportion of social-protection expenditure in 2023, at 70% of the total.

CSO statistician Ciara O’Shea said that the social-protection spend represented 12% of Gross Domestic Product (GDP) or 22% of modified gross national income. 

The main increases were in sickness/healthcare (+€2 billion) and housing (+€0.9 billion).

Public health is the largest expenditure (€24.5 billion or 39% of the total), followed by:

• Department of Social Protection voted expenditure (€13.5 billion or 21%),
• Social Insurance Fund (€12.2 billion or 19%),
• Government employment (€5.9 billion or 9%), and
• Private occupational pensions (€4.1 billion or 6%).

The remaining two schemes are small in comparison: the housing scheme accounted for €2.2 billion or 3% of expenditure, while the spend on the child-protection scheme was €1 billion or 2% of expenditure, O’Shea said.

In 2023, expenditure on unemployment was sixth out of the eight spending categories.

Cash

Social-protection expenditure can be cash, such as unemployment benefits and pensions, or in kind, such as health-care services free at the point of delivery.

In 2023, non-means-tested benefits (both cash and in kind) accounted for nearly three-quarters of social-protection expenditure.

Means-tested benefits (explicitly or implicitly conditional on the beneficiary’s income), both cash and in kind, were a quarter of expenditure.

Administration costs account for 3% of expenditure.

The old age function is the next largest category of expenditure after health, at €16.8 billion or 27%, and  mainly comprises pension payments.

Pensions

Contributory State pension payments at €8.6 billion were paid by the Social Insurance Fund, while €4 billion was paid in public-sector pensions and €2.7 billion was paid by private occupational pensions.

A total of €1.5 billion was paid out in non-contributory State pensions payments (DSP voted expenditure).

Family and children were the third largest category of expenditure at €5.7 billion.

The majority (€4.1 billion) relates to child benefit payments.

Social-protection benefits are also provided by the Social Insurance Fund and the Government Employment Scheme in relation to parental benefits and paid maternity and paternity leave.

In 2023, the housing function was the fourth-largest category at €3.6 billion or 5.9% of all social benefit expenditure.

This primarily relates to the provision of social housing by local authorities and approved housing bodies, emergency accommodation to refugees, and housing support payments. 

Disability payments were €3.3 billion.

Unemployment, survivors, and social-exclusion functions make up the remaining €4.4 billion of social-protection benefits.