Social protection statistics – early estimates – European Commission

Report on European Union Social Protection Expenditure in Relation to Sustainable Development Goals (SDGs)

Introduction and Key Findings

Based on preliminary data for 2023, this report analyzes the European Union’s expenditure on social protection benefits, contextualizing the findings within the framework of the United Nations’ Sustainable Development Goals (SDGs). The data indicates a substantial commitment by EU member states to social welfare systems, which are instrumental in achieving several key SDGs, particularly SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), SDG 10 (Reduced Inequalities), and SDG 11 (Sustainable Cities and Communities).

• Total EU expenditure on social protection benefits reached €4,583 billion in 2023.
• This figure represents 26.8% of the EU’s Gross Domestic Product (GDP).
• Expenditure saw a 6.1% increase compared to 2022, demonstrating a continued focus on social support systems.

Overall Expenditure and Progress Towards SDG 1 and SDG 10

The total expenditure of €4,583 billion, equivalent to 26.8% of GDP, underscores the EU’s role in implementing social protection systems as mandated by SDG 1 (Target 1.3) to eradicate poverty and SDG 10 to reduce inequalities. While the expenditure-to-GDP ratio slightly decreased from 26.9% in 2022, the nominal increase of 6.1% in spending highlights a sustained investment in social safety nets.

Variations Among Member States

Significant disparities in social protection spending relative to GDP exist across the EU, reflecting different national strategies and capacities for addressing inequality (SDG 10).

• Highest Ratios: France (31.3%) and Finland (31.2%) demonstrated the highest commitment relative to their economic output.
• Lowest Ratios: Ireland (12.0%) and Malta (13.2%) recorded the lowest ratios.
• Largest Annual Increases: Slovakia (+18.9%) and Poland (+18.4%) showed the most significant growth in social protection spending, indicating an accelerated effort towards strengthening social support.
• Smallest Annual Increases: Denmark (+2.3%) and Italy (+3.5%) recorded the slowest pace of growth.

Functional Analysis of Expenditure and Direct SDG Contributions

The allocation of social protection benefits across different functions reveals targeted efforts towards specific SDGs. The distribution provides insight into policy priorities for achieving a sustainable and equitable future.

1. Old Age and Survivors (46.7% of total expenditure)

   This largest category, primarily comprising pensions, is fundamental to ensuring income security for the elderly, directly contributing to SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities) by preventing poverty in old age. Italy (59.2%) and Portugal (54.8%) allocated the highest shares to this function.

2. Sickness and Health Care (29.9% of total expenditure)

   This expenditure is a direct investment in SDG 3 (Good Health and Well-being), aiming to ensure universal access to health services. Ireland (45.0%) and Cyprus (37.8%) dedicated the largest portions of their social budgets to this area.

3. Family and Children (8.6% of total expenditure)

   Benefits for families and children support SDG 1 (No Poverty) by reducing child poverty, contribute to SDG 4 (Quality Education) by enabling better access to schooling, and advance SDG 5 (Gender Equality) by supporting childcare responsibilities. Luxembourg (14.7%) and Poland (13.5%) were leading in this category.

4. Disability (7.1% of total expenditure)

   This function provides crucial support for persons with disabilities, directly aligning with the goals of SDG 10 (Reduced Inequalities) and SDG 1 (No Poverty). Denmark (18.2%) allocated a notably high share to disability benefits.

5. Unemployment (3.9% of total expenditure)

   Unemployment benefits serve as a critical safety net that supports SDG 8 (Decent Work and Economic Growth) and SDG 1 (No Poverty) by providing temporary income support during job transitions. Spain (6.2%) and France (5.6%) had the highest shares of expenditure in this area.

6. Housing and Social Exclusion (3.8% of total expenditure)

   Expenditure in this category directly addresses SDG 11 (Sustainable Cities and Communities), specifically Target 11.1 concerning access to adequate and affordable housing, and contributes to SDG 1 (No Poverty). The Netherlands (7.4%) and Finland (6.5%) reported the highest shares.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on social protection expenditure in the EU is directly connected to several Sustainable Development Goals (SDGs). The analysis of spending on benefits for old age, sickness, disability, family, unemployment, and social exclusion touches upon the core principles of poverty reduction, health, decent work, and equality.

• SDG 1: No Poverty

  This goal is central to the article’s theme. Social protection systems are a primary tool for poverty reduction and providing a safety net for vulnerable populations. The article’s focus on the total expenditure on social protection benefits demonstrates the commitment of EU countries to policies aimed at preventing and alleviating poverty.

• SDG 3: Good Health and Well-being

  The article explicitly details the expenditure on the “sickness/health care function,” which it states accounted for 29.9% of all social protection benefits in the EU in 2023. This directly relates to ensuring healthy lives and promoting well-being by financing healthcare services for the population.

• SDG 8: Decent Work and Economic Growth

  The provision of unemployment benefits, which the article identifies as a specific function of social protection expenditure (3.9% of the total in the EU), is linked to this goal. These benefits support individuals who have lost their jobs, contributing to economic stability and protecting labor rights during periods of unemployment.

• SDG 10: Reduced Inequalities

  Social protection policies are fundamental to reducing inequality within and among countries. By providing support to various groups, including the elderly (“old age and survivors’ function”), persons with disabilities (“disability function”), and low-income families (“housing and social exclusion function”), these expenditures aim to create a more equitable distribution of resources and opportunities.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the SDGs identified, the following specific targets are relevant to the data presented in the article:

1. Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.

   The entire article is an analysis of the financial commitment to these “nationally appropriate social protection systems.” The data on total expenditure (€4,583 billion in 2023) and its breakdown by function (old age, disability, family, etc.) directly reflect the implementation and scale of these systems designed to cover the vulnerable.

2. Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services…

   The article’s specific mention of expenditure on the “sickness/health care function” directly relates to the financing of health coverage. The data, showing this function accounts for 29.9% of total social protection spending, illustrates the significant public investment towards achieving universal health access and providing financial risk protection against health shocks.

3. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities…

   While the article does not measure employment rates, it measures a key policy response to the lack of employment. The data on expenditure for the “unemployment function” (3.9% of total benefits) is a direct measure of the support systems in place for those who are not in productive employment, which is a component of the broader decent work agenda.

4. Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.

   The article is a direct examination of the “social protection policies” mentioned in this target. The measurement of expenditure as a percentage of GDP (averaging 26.8% in the EU) is a clear metric of the fiscal policies being used to fund social protection and, by extension, to achieve greater equality.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several quantitative indicators that, while not always identical to the official SDG indicators, serve as direct measures or strong proxies for tracking progress towards the identified targets.

• Indicator for Target 1.3 and 10.4: Total expenditure on social protection benefits as a percentage of GDP.

  This is the primary indicator used throughout the article. It measures the financial scale and national priority of social protection systems. The article states this was 26.8% of GDP for the EU in 2023. Variations between countries, from 31.3% in France to 12.0% in Ireland, can be used to compare the level of implementation of these policies.

• Indicator for Target 3.8: Expenditure on the sickness/health care function as a share of total social protection benefits and as a percentage of GDP.

  The article provides this specific data point, stating that health-related benefits accounted for 29.9% of all social protection expenditure in the EU. This financial input indicator is a direct measure of public spending dedicated to health coverage.

• Indicator for Target 1.3: Expenditure on social protection benefits by function (old age, disability, family/children, unemployment, etc.) as a share of total benefits.

  The article’s detailed breakdown allows for monitoring support to specific vulnerable groups mentioned in Target 1.3. For example, it notes that the “old age and survivors’ function” accounted for 46.7% of benefits, the “disability function” for 7.1%, and the “unemployment function” for 3.9%. These figures serve as indicators of the extent to which social protection systems are covering different segments of the vulnerable population.

4. Table of SDGs, Targets, and Indicators

Source: ec.europa.eu