Mary Hanafin (Dún Laoghaire, Fianna Fail)

Welfare fraud is theft. It is a serious crime and the Department is doing everything it can to prevent and detect fraud, and to crack down on those who abuse the system. Several initiatives were introduced or enhanced last year to target controls more effectively in schemes. These included more frequent mailshots to identify people who have left the country and who are no longer entitled to a payment; additional data matches with other agencies to identify welfare customers who had failed to disclose relevant information to the Department, such as earnings and compensation claims; improved internal data matching procedures to ensure that relevant information available in one area of the Department is applied to all schemes; and increased emphasis in the border regions on control of claims from applicants with a previous address in Northern Ireland. These were additional to the improved controls introduced in 2008, which included requiring new claimants of jobseekers payments to collect their money in person at the post office rather than having it paid straight into their bank account.

Greater emphasis was also placed last year on prevention of fraud and error at the claim application stage. While this is the most cost effective mechanism of reducing unwarranted welfare expenditure, it should be noted that savings achieved in this way are not included in the published figures for control savings. For 2009, the Department set a target of reviewing almost 620,000 individual welfare claims. Over 750,000 reviews were carried out last year, which is 20% more than the annual target. The total fraud and error savings recorded for the year was approximately €484 million, which is an increase of €8 million on the 2008 figure.

In considering the level of savings recorded in 2009, it is important to note that the final average live register figure for the year, at 395,500, was significantly lower than the 440,000 that had been predicted when the annual target was set. While it is difficult to identify exactly why the above target number of reviews did not generate higher savings, it may be partially due to decreased opportunities for people to work and claim. Increased emphasis on preventing unwarranted claims at the initial application stage may also have led to a reduction in the number of claims stopped after they had gone into payment.

Additional information not recorded on the floor of the House.

It is also worth noting that the 2009 control savings from several schemes were ahead of target. These include family income supplement, carers, illness payments and State pensions.

Overall, I am satisfied that the enhanced controls introduced in recent years are helping to reduce the potential for fraud and errors in welfare payments. I also believe that the new anti-fraud powers included in the Social Welfare Bill are a clear demonstration of this Government's determination to do everything that it can to stop people getting money to which they are not entitled.

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