Written answers

Wednesday, 2 April 2008

Department of Social and Family Affairs

Social Welfare Fraud

9:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 93: To ask the Minister for Social and Family Affairs if he will confirm a current investigation by his Department which found that 2% of non-contributory State pensions were improperly claimed; if measures are in place in his Department to recover fraudulent claims; and if he will make a statement on the matter. [12113/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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A key objective of my Department's control strategy is to ensure that the right person is paid the right amount of money at the right time. As part of this strategy, my Department undertakes surveys of the levels of fraud and error to identify the types of claims which should be prioritised for review. The process involves a review of a random sample of cases, generally in the region of 1,000, to assess the underlying levels of fraud and error with action being taken by scheme managers to address the risks identified. When a survey is completed the results are extrapolated and are used to provide the overall fraud and error rate in terms of the percentage of cases affected and the percentage of annual expenditure in the scheme attributed to fraud and error.

A fraud and error survey of the State Pension (Non Contributory) scheme was recently completed to determine the level of fraud and error within that scheme. The State Pension (Non Contributory) scheme has a customer base of 97,000 pensioners and for the purpose of this survey 1,008 cases were reviewed. Cases were randomly selected to show representation across a range of parameters including region, gender, age, means etc. The result of the survey confirmed that the level of fraud was extremely low with only one case out of the 1008(0.1%) deemed to be fraudulent. An error rate of 1.9% was identified and mostly related to cases with means. The majority of these cases were reduced by €10 per week or less. The outcome of the survey confirms that the risk control policy in place for State Pension (Non Contributory) is working effectively.

All overpayments relating to fraudulent claims are actively pursued. In 2006 a new debt management strategy was developed for the Department to pursue the recovery of debt, to maximise recovery levels with due regard to value for money and with particular emphasis on recovery from people no longer dependent on social welfare payments.

I am committed to ensuring that social welfare payments are available to those who are entitled to them. I am also determined to ensure that abuse of the system is prevented and is dealt with effectively when detected. In this regard the control programme of my Department is carefully monitored and the various measures are continuously refined to ensure that they remain effective.

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