Joan Burton (Dublin West, Labour) | Oireachtas source

I shall respond to the general control questions posed by Deputy Ó Snodaigh. The savings target for 2013 is €710 million. As he said, the ambition is higher than it was last year by €40 million. In other words, there is an increase of €40 million on what was achieved in 2012.

Every year we have increased the number of reviews with a consequent prevention of further expenditure. Unfortunately, from the point of view of social welfare, as Deputy O'Dea and, in particular, Deputy Ó Snodaigh will know, it does not mean that savings sorts us out with the Department of Finance because it is the prevention of further expenditure that would have happened had we not carried out the reviews. However, it does mean that spending is much more targeted at the people who are entitled to the money.

Control reviews relate to the perceived risk of fraud, error or other loss and are generally reviewed regularly for effectiveness. Scheme managers across the Department adjust the number of reviews undertaken throughout the year and depend on a number of factors, including the return from different projects. If a project is started and shows a significant return then we might extend that particular examination countrywide. If a project starts in Carlow-Kilkenny then we will extend it countrywide.

Most savings on pensions result from a review of estates. After a pensioner has died his or her estate, if he or she has one, will be reviewed. Often people will have continued to claim a non-contributory pension, for example, but his or her estate's details will show that he or she did not continue to have an entitlement. I shall outline what happens when a pensioner or retired individual applies for a means tested old age pension. At the time he or she applies for a pension he or she might have a particular set of financial circumstances. Some years later his or her financial circumstances might have changed. Perhaps a sibling or family member died and left him or her their savings. Circumstances might have changed and, therefore, a person's qualification for a full non-contributory pension would be changed. The Department conducts a control check of estates and matches data. Obviously the Revenue Commissioners and the estates and probate offices have a great deal of data which the Department will examine. If it appears that a person has claimed an entitlement that he or she no longer had then we will seek to recover that money from the estate. Overall, that accounts for about 11% of the overpayment cases from which we seek recovery.