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Public Finance, Economic Statistics
Marianne Ahle Møller
+45 24 66 00 28

MNM@dst.dk

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Social protection expenditure

The statistics are an annual statement of expenditures on benefits connected to social protection assessed in DKK million. Social benefits are benefits intended to relieve households and individuals of the financial burden of a defined set of risks or needs, e.g. illness or unemployment. The statement includes both cash benefits and benefits in kind (e.g. free health care services). The statistics are divided into eight main areas and includes the whole of Denmark as well as some Danish pensioners abroad. The benefits include both public and private expenses.

Data description

The Statistics illuminate expenditures connected to social protection targeting individuals and/or households. The statistic is a part of the common European statistics framework, ESSPROS-statistik (European System of Integrated Social PROtection Statistics), which aim is to compare national, administrative data on social protection; comprising social benefits for individuals and/or households as well as the financial part behind the benefits. The statistic is thus comparable with other European countries as well as other countries reporting to Eurostat on social protection.

Social protection encompasses a society’s social schemes and benefits, which aim is to relieve households and individuals of the financial burden of a defined set of risks or needs. These risks – and relevant benefits – are categorized in eight main areas:

  1. Sickness/Health care (e.g. Sickness benefit, free health care)
  2. Disability (e.g. Early retirement pension, senior pension)
  3. Old age (e.g. Old age pension, anticipated old age pension)
  4. Survivors (e.g. Funeral expenses, compensations)
  5. Family/Children (e.g. Maternity leave benefit, child benefit)
  6. Unemployment (e.g. Unemployment benefit, cash benefit)
  7. Housing (e.g. Housing benefit for families or pensioners)
  8. Social exclusion not elsewhere classified (e.g. subsistence income for people outside the labour marked)

The statistics cover expenditures on social schemes and benefits determined in grant acts in central government and in financial accounts of municipal authorities. Education is not included in the scope of the statistic, unless it is part of social assistance to needy families with children. In addition to expenditures, the statistic encompasses relevant administration benefits and the receipts of relevant schemes and benefits.

The statistic embraces payments in cash, coverage of expenditure paid and delivery of goods and services. It is not essential whether the benefits are provided under the auspices of private or public bodies. The statistic distinguishes between cash benefits and benefits in kind; the latter can e.g. entail dentist-treatments, free health care services or medicine.

In addition to the premise of one or more of the above-mentioned social risks or needs, payment of social benefits is effected through collectively schemes organized by the government and/or implemented through collective agreements. It is essential for inclusion in the statistics that there is no compulsory trade-off in connection with the measure. In accordance with the ESSPROS manual social benefits cover all types of public and private measures, alleviating the financial burden of private individuals or households in connection with a range of socially related risks or needs on the assumption that there is not a simultaneous form of trade-off or an individual scheme.

For practical reasons, some types of assistance, which do not require regular accounting (e.g. Christmas collections, ad hoc humanitarian assistance and relief aid) are not covered by the definition of social measures.

The statistic is presented in gross figures and in net figures, meaning before and after tax is subtracted from the social benefits. Specific, relevant tax-rates are received from the Ministry of Finance.

Classification system

These statistics use the classification on social protection expenditure which is based on the concepts that are defined in the European System of Integrated Social Protection Statistics (ESSPROS) classification.

The classification divides social protection expenditures into eight main areas of risks or needs: sickness and health care, disability, old age, survivors, family and children, unemployment, housing, and social exclusion not elsewhere classified. The statistic distinguishes between cash benefits and benefits in kind; the latter can e.g. entail dentist-treatments, free health care services or medicine.

Sickness and health

Income maintenance and support in cash or kind intended to maintain the citizen's loss of income in connection with sickness and to restore or improve the health of the people protected irrespective of the origin of the disorder. In Denmark the function covers national health insurance service, incl. school and children's dental services and home nurses; sickness benefits paid by local governments; employers' estimated expenditure on unemployment benefits; hospital and health services; preventive public health service incl. maternity service and medical checks of children.

Disability

Income maintenance and support in cash or kind (except health care) in connection with the inability of physically and mentally disabled people to engage in economic and social activities. In Denmark the function covers, e.g. early retirement pensioners, maximum and intermediate early retirement pension; welfare services for the disabled; rehabilitation; assistance for the care of disabled children or adults in their own home; occupational injury insurance; institutions, home help for the disabled; support for aids for the disabled.

Old age

Income maintenance and support in cash or kind (except health care) in connection with old age. In Denmark the function covers, e.g. old age pension, partial pension; supplementary labour market pension (abbreviated ATP), civil servants' pension; pension funds; early retirement pay; nursing homes for pensioners; day institutions and other welfare work; home help, support for aids for the elderly. Private pensions are registered on a net basis, i.e. after deductions of social contributions.

Survivors

Income maintenance and support in cash or kind in connection with the death of a family member. In Denmark the function covers, e.g. funeral help and certain insurance companies.

Family and children

Support in cash or kind (except health care) related to families with children. In Denmark the function covers, e.g. maternity benefits, family allowance, child benefits, advance payments of child maintenance, day and residential institutions for children and young people and measures intended for preventing the placement of children outside their family home.

Unemployment

Income maintenance and support in cash or kind in connection with unemployment. In Denmark the function covers unemployment benefits, recipients of cash benefits participating in job training programs, compensation for loss of income during education/retraining provided by the central government, job-creation measures and job centers, etc.

Housing

Help towards the cost of housing. In Denmark, the function covers ordinary rent subsidies and rent allowance.

Social exclusion not elsewhere classified

Benefits in cash or kind (except health care) specifically intended to combat social exclusion and where the persons concerned are not covered by one of the above-mentioned functions. In Denmark, the function covers social assistance in accordance with the Danish Social Assistance Act, including help to refugees, various integration efforts, the Employees' Guarantee Fund, institutions for the homeless and treatment of alcohol and drug abuse, etc.

Sector coverage

General Government and part of the financial sector.

Statistical concepts and definitions

Social expenditure: These statistics covers social expenditure encompassing social benefits aimed at individuals and households cf. the following description of social benefits. The expenditures are defined as transfers in cash or in kind.

Social benefits aimed at individuals and households: : Benefits relieving individuals and households of economic burdens in relation to a socially conditioned set of risks or needs, e.g. illness or unemployment. The risks or needs, that may give rise to social protection, are divided in eight categories (Sickness and health care, Disability, Old age, Survivors, Family and children, Unemployment, Housing, and Social exclusion not elsewhere classified) and are based in the European statistical system of ESSPROS, which this statistics builds upon.

Social protection aimed at individuals and households: Encompasses the social benefits and schemes of a society intended to relieve individuals and households of economic burdens in relation to e.g. illness or unemployment, and thus protects persons against e.g. social exclusion.

Statistical unit

The statistical units of the statistics are the expenditures.

Statistical population

The population for this statistics is the total expenditure on social protection.

Reference area

Denmark, and some persons living abroad receiving Danish social benefits, e.g. pensioners or persons receiving highly specialized treatment.

Time coverage

2007 and on.

Base period

Not relevant for these statistics.

Unit of measure

Mill. DKK

Reference period

The calendar year.

Frequency of dissemination

Annually.

Legal acts and other agreements

The information is collected in accordance with the Act on Statistics Denmark, cf. section 6 of Act no. 599 of 22nd June 2000 with amendments in accordance with Act no. 431 of 6th June 2005.

Council Regulation (EC) No. 458/2007 of 25 April 2007. Commission Regulations No. 1332/2007 of 12 November 2007 and No. 10/2008 of 8 January 2008.

Cost and burden

There is no response burden as the primary data are are already available at Statistics Denmark.

Comment

Please contact Statistics Denmark for further information. More information is available on the subject page for Social expenditures.