Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Question 79: To ask the Minister for Social and Family Affairs the efforts he has made to date to combat welfare fraud; the areas which are most vulnerable to fraudulent claims; the amount of money lost to fraudulent claims in the past year; and if he will make a statement on the matter. [17122/05]

Séamus Brennan (Dublin South, 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 my Department. In this regard all staff engaged in claims processing are concerned with preventing and detecting fraud and abuse.

More than 600 staff at local, regional and national level are engaged on a full or part-time basis on work related to the control of fraud and abuse of the social welfare system. Controls are exercised at both the initial claim stage and at subsequent stages during the claim life cycle. Claims are reviewed on a regular and targeted basis.

Fraud against the social welfare system arises in a number of different ways. In some instances persons claiming social welfare payments make false declarations or conceal material facts to obtain payment. In other cases there is deliberate failure to notify the Department of a change in circumstances or failure by an employer to comply with PRSI regulations.

A key objective of my Department's control strategy is to ensure that we pay the right person the right amount of money at the right time. A four pronged approach has been adopted by the Department to meet this objective, namely, prevention of fraud and error at the initial claim stage, early detection through effective review of claims in payment, measures to deter fraud and the pursuit and recovery of overpayments. Systematic risk analysis is a key element of the control strategy. Scheme managers are responsible for identifying areas of high risk of fraud and abuse and for putting in place appropriate measures to address these risks in a systematic way. This approach ensures that review activity is targeted in the most effective manner.

During 2004, my Department undertook a number of specific control initiatives across its regions. The outcomes of these initiatives are currently being evaluated with a view to identifying best practice and to implementing successful initiatives in other areas of the country. These initiatives will feed into the process of refocusing control activity to those areas and types of cases which present the highest risk of fraud and error. My Department, as an integral part of its control strategy, is committed to undertaking at least two surveys annually to establish the levels of fraud and error arising. This enables us to identify the types of claims which should be prioritised for review purposes.

In addition to the specific control initiatives outlined above, staff in my Department during 2004 carried out some 306,000 reviews of entitlements. They also inspected the records of some 6,600 employers to ensure compliance with the Department's regulations and, in particular, to prevent and detect abuses of the system.

The total amount of overpayments set up as a result of detected fraud or suspected fraud during 2004 was €18.63 million, 50% of which was as a result of customers concurrently working and claiming. Fraud overpayments also arose in situations such as an undisclosed change in marital status, failing to disclose full means or increases in means, customers absenting themselves or their dependents from the State and failing to disclose the employment or residential status of their spouse, partner or dependents.

The prosecution of offenders is a key element in my Department's overall control approach. My Department's policy is to consider all cases of fraud for prosecution. During 2004, 503 cases were referred to the State Solicitor's office to initiate prosecution proceedings. A total of 282 cases were finalised in court, of which ten were served with prison sentences, 26 received suspended sentences, 158 were fined and 43 received the benefit of the Probation Act.

I am committed to ensuring that social welfare payments are available to those who are entitled to them and that they are delivered in an effective and efficient way. I am also determined to ensure that abuse of the system is prevented and is dealt with effectively when detected. I will take whatever steps are necessary to achieve this.