David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Question 45: To ask the Minister for Social and Family Affairs the checks and balances in operation in his Department to ensure people who are entitled to receive various social welfare payments are receiving them; and if he will make a statement on the matter. [23225/06]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The recent value for money examination undertaken by the Comptroller and Auditor General looked at the rent supplement scheme during the period 2000-05. It did not examine the overall supplementary welfare allowance scheme.

The report found that expenditure rose substantially during that period, reaching €369 million in 2005, while recipient numbers rose by 38% to more than 60,000. One third of the overall increase in spending on rent supplement in the period under review is explained by increases in the number of recipients. The remaining two thirds related to increases in average rent supplement payments. The increase in the average rent supplement payment is attributable to a number of factors, including family size, location and rent levels.

The Comptroller and Auditor General commented on the need to capture and record additional information which would allow for informed analysis of movement in rent supplement expenditure. The report also raised the issue of adjusting rent limits downwards when rents were reducing in order to avoid unplanned gains by rent supplement landlords and or tenants. In this regard, the Department froze rent limits in 2002 and this, together with subsequent regulations on rents charged, has had a stabilising effect on rent limits in the relevant sector of the market. Rent levels fluctuated throughout the period under review. Data from the CSO show that rents rose up to April 2002 and then fell until January 2005, and have risen slowly since then.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

The Minister is answering the wrong question. On the Order Paper Question No. 45 refers to something totally different.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The first question I have is on rent supplement. If the House is agreed I shall complete this question and return to Question No. 45.

Séamus Pattison (Carlow-Kilkenny, Labour)
Link to this: Individually | In context

Is it the fourth question in the Minister's brief?

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

No, that is different again.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The first question listed on the Order Paper concerns checks and balances in the operation in the Department. These questions are out of order, so I shall obviously have to work with them. The first question put down for me today deals with checks and balances. I shall continue with my reply to that one, if that is all right.

The primary objective of the Department's information policy is to ensure that all citizens are made aware of their entitlements and that they are kept informed of changes and improvements in schemes and services as they occur. The provision of information in a clear and accessible manner is an essential element in the achievement of this objective. Comprehensive information and guidance for social welfare schemes is available through the Department's network of more than 130 local offices throughout the country. Officers in 58 local social welfare offices are dedicated to providing information and are available to explain supports and services, and to assist people in completing forms and assessing their entitlements.

The Department produces a comprehensive range of information leaflets and booklets covering every social welfare payment or scheme. These information leaflets are available in a wide range of outlets throughout the country, including all local social welfare officers, citizens' information centres, post offices, many local community centres, as well as from the Department's lo-call leaflet line. The information is also available on the Department's website. The central information services unit in my Department operates a phone service where people can get information on all our services.

The Department takes a proactive approach in advertising new schemes and changes, as well as improvements to existing schemes and services, by using an appropriate mix of national and provincial media, information leaflets, fact sheets, posters and direct mailshots. Selective use is made of freephone services to provide information on new schemes and services, as well as at particular times of the year, such as at budget time. In addition to information aimed at the public, the Department routinely targets certain specific groups of customers to ensure that they are aware of the supports and services available.

In April 2005, a nationwide publicity campaign was undertaken for the respite care grant scheme to target carers who provide full-time care and attention and are, therefore, likely to qualify for the grant. Customers who received a respite grant in 2005 are being contacted regarding their possible entitlement to the grant in 2006. In addition, a fresh information campaign for carers will be undertaken later this year. In September 2005, a copy of the information magazine, Options & Opportunities, was sent out by my Department to more than 86,000 customers who are on the one-parent family payment. Feedback from this circulation to date had been very positive. In March 2006, the Department undertook a nationwide awareness campaign to promote and encourage those people to take up the family income supplement. This campaign lasted a week and included advertisements on television and radio, along with the provision of helplines.

Every effort is made by the Department to ensure that customers take up their full entitlement. The Department automatically issues application forms for child benefit on receipt of the notification of the birth of a child. New pensioners are issued with a checklist, advising them on all the support to which they may be entitled. The Department also works closely with Comhairle, the national citizens' information service, which provides information on social services in its network of centres throughout the country, on the Oasis website and through the citizens' information phone service. A number of voluntary organisations funded by the Department also carry out much work in this area.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

I thank the Minister for his reply. The checks and balances in operation should ensure that only those entitled to receive various payments receive them. In 2004, almost 196,000 customers paid via the electronic funds transfer received mailshots from his Department. Six thousand of those letters were returned and more than 1,000 claimants' claims were terminated. Is the Minister satisfied that the checks and balances in the electronic funds transfer are in operation? Is he satisfied that only those entitled to receive payments from his Department receive them? What happens when claims are terminated? Is it true that they are terminated mainly because the recipients are no longer at the same address? If that is the case, what kind of losses accrue to the State as a result? Are those losses returned to the Exchequer?

More than 4,500 letters were returned this year and investigations are ongoing. Why is the electronic funds transfer so loose? Why do so many people seem to receive payments to which they are not entitled? The checks and balances may need to be much tighter.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

Nobody should receive a payment to which he or she is not entitled. People sometimes retain payments to which they have lost entitlement owing to increased income and so on. They are required to notify the Department of such information and sometimes they fail to do so. We recovered in excess of €400 million from our different checks, balances, surveys and control measures to ensure that nobody receives funds to which he or she is not entitled.

When we sent out the lone parent's circulation to 86,000 people, 2,000 came back. We find that information very useful because it allows us to update our database. Every time we do a mass circulation, we learn something by obtaining new addresses, information on income and so on.

I am not aware that there is a problem with electronic funds transfer, but I will take it up with officials in the Department. People increasingly opt for such transfers, including as much as 50% to 60% of new applicants for different schemes. At an overall level, about 30% of applicants avail of electronic funds transfer. We must ensure that controls are in place to check payments. We make 900,000 payments every week and we must keep a tight grip to minimise whatever small proportion of them that goes to those not entitled to them. In the event of fraud, we must take an uncompromising view.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Is the Minister satisfied that the only way to check on the electronic funds transfer method is by mailshot? Does he accept that the 4,500 letters returned last April represent a great number of unaccounted people? Each year, more than 1,000 claims for child benefit are paid for which people do not seem to exist. Is this money retrieved by his Department?

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

Absolutely. The Department takes a strong line on that. We must distinguish between outright fraud, where people set out to give the Department false information or fail to give information, and genuine departmental errors or errors made by the applicant.

The Deputy has regularly asked me about the money we spend on our computer systems. He is probably surprised how significant it is. A huge investment is being made in our computer and control systems to ensure that the €13 billion paid out every year by my Department is tightly controlled and that we learn something from each experience. If 4,500 letters are sent back, it often means a change of address, circumstances or condition. A very small amount might be due to attempted fraud, but we learn from every one. It does not necessarily cost the State money. If the letters are sent back, it often means we do not pay those people the following week because we may have learned that they no longer qualify.