Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Question 103: To ask the Minister for Social and Family Affairs her views on the fact that measures aimed at saving money on welfare fraud secured savings of some €60 million less than expected; and if she will make a statement on the matter. [3536/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of the Department. More than 600 staff at local, regional and national level are engaged on a full-time or part-time basis on work related to the control of fraud and abuse of the social welfare system.

Last year, almost €476 million in social welfare payments was saved through fraud control measures, an increase of €29 million on the previous year. The main areas where savings were made were on pensions, one parent family payments, unemployment payments and illness payments. More than 560,000 social welfare claims were reviewed in 2008, compared to less than 350,000 the previous year.

There was also a notable increase in the number of possible frauds reported by members of the public to the central control section of the Department, which rose by 70%, to more than 1,000 reports. The target set for savings from general control activity in 2008 was very ambitious, at €63 million more than had been achieved in 2007. Nonetheless, with the type of extra activity I have outlined, savings were close to the target at year end.

Unfortunately, however, the increase in the volume of applications for jobseeker's allowance payments in the last six months of 2008 meant that social welfare inspectors who had been concentrating on anti-fraud activity had to be diverted to means testing applicants in order that claims could be decided on faster. This resulted in slightly less being realised under the general fraud control measures than had been envisaged at the start of 2008.

However, the €25 million of savings in targeted programmes announced in July will be exceeded. A sum of €9 million was saved as a result of the increased emphasis on the unemployment schemes by the Department's special investigation unit while €20 million of savings are estimated to result from increasing the frequency of mailshots to child benefit recipients. A project related to the one parent family payment in Kilbarrack local office resulted in savings of almost €500,000 by the end of 2008.

Another measure introduced in 2008 aimed at preventing fraud was the requirement for new claimants of jobseeker's payments to collect money in person each week at the post office rather than being paid by electronic funds transfer. The Department will continue to prioritise fraud control across all of our schemes to ensure that the correct payments are made to the correct people for the duration of the period to which they have an entitlement to them.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

No one would disagree with the importance of fraud control measures in the Department and the Minister has my support in her efforts to tackle the problem of social welfare fraud. Our views diverge, however, on the notion that €59 million is slightly under target. The Taoiseach would be a happy man if he believed he could find another €59 million before entering the Chamber at 4 p.m. It is not acceptable for the Minister to state she met the €25 million target announced in July when the overall projected savings were not achieved.

This returns us to the lack of forward planning in the Department and my previous question on the lengths of queues in social welfare offices. If the Government had shown a little foresight and anticipated the increase in unemployment, it would not have been necessary to transfer social welfare inspectors, whose function is to tackle fraud, to dealing with dole queues. How many social welfare inspectors were transferred? How much of the €59 million shortfall in projected savings from social welfare fraud measures can be ascribed to the need to transfer social welfare inspectors from anti-fraud activity to dealing with lengthening dole queues and the Department's failure to appoint and train staff?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

It is not possible to indicate exactly how much each individual inspector was doing.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

How many inspectors were moved?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The important issue is the amount of money saved through anti-fraud measures. As the Deputy indicated, we all agree on the importance of such measures. The Department has set significant new targets for this year. Savings of €476 million through anti-fraud measures are significant.

The processing of applications by inspectors or other departmental staff is an anti-fraud measure in itself as it ensures sufficient care and attention is given to making correct decisions on payments. Removing a payment from someone is much more difficult than awarding a payment. The assessment process is also a control measure.

Desk operations are another useful measure. The Department undertakes data matching activities with Revenue to ascertain whether people are working, with FÁS to determine whether they are in training and with the Health Service Executive. The Department of Education and Science provides the names of all third level students. We also match our data with commencement of employment data and the names of those who have been sent to prison. Data matching, as a desk exercise, is a successful way of controlling fraud and will continue this year.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

The Minister said this year's target is significant and data matching is quite successful, but it is still €59 million short from where she said she would be. How do we know she will reach the target this year? What is she going to do this year that is different to ensure the targets are met, targets she failed to meet by €59 million last year?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

When one sets targets at the beginning of the year it is not always possible at the end of the year to know what additional measures or initiatives would be needed or put in place. As I have already said, 600 staff are working on this, dealing with millions of claims and payments.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

The Minister's targets are meaningless.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

They are doing more interviews with people to check if they are genuinely looking for work. They are working particularly on target groups, which are high risk groups. These groups include 18 to 25 year olds, people who were put on an employment action plan and are still on the live register and those who have been put on suspended payments, whom we are targeting in particular.

Regarding child benefit, we will also be targeting those who have shown up as being high risk. In particular this includes non-Irish citizens or those working here whose children are living abroad. We have had significant savings in child benefit in targeting such groups last year. It is an area we will be concentrating on even more over the next number of months.