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UK social protection spending exceeds EU average

Published 06/02/2009, 08:48 AM
Updated 06/02/2009, 08:57 AM

BRUSSELS, June 2 (Reuters) - Britain, seen in the European Union as the main advocate of liberal economic policy, spends more on social protection than Italy, Finland or Ireland and almost the same as Germany.

European Union statistics office data showed on Tuesday that measured in purchasing power standard, an artificial reference currency that eliminates price level differences between countries, spending on social protection per capita in the EU was 6,349 PPS in 2006.

Britain was well above that average with social protection spending per capita of 7,410 PPS, just below Germany which spent 7,706 PPS.

Measured as percentage of gross domestic product, Britain spent 26.4 percent on social protection against an EU average of 26.9 percent.

Of social protection spending in the EU in 2006, 46 percent was on old age and survivors benefits, 29 percent went on sickness and health care benefits, while disability benefits and family and children benefits were 8 percent each, Eurostat said.

Unemployment benefits accounted for only 6 percent and housing and benefits to counter social exclusion for 4 percent.

More recent data was not yet available, but Eurostat's Antonella Puglia who prepared the data said the overall trends were likely to hold also in later years.

The European Union's top social protection spender was Luxembourg, where outlays per capita came up to 13,458 PPS.

The Netherlands and Sweden came second and third respectivley with 9,099 PPS and 8,998 PPS in 2006 with Denmark and Austria taking fourth and fifth pace respectivley with spending of 8,601 PPS and 8,524 PPS.

France, often seen as the most sensitive about safeguarding social protection policies called the European social model, spent 8,200 PPS.

Romania and Bulgaria had the lowest spending of the 27-nation bloc at 1,277 PPS and 1,294 PPS respectively. (Reporting by Jan Strupczewski, editing by Stephen Nisbet)

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