John Perry (Sligo-North Leitrim, Fine Gael)
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Question 121: To ask the Minister for Social and Family Affairs if he will confirm a current investigation by his Department which found that 4.7% of disability allowance paid to Irish claimants were fraudulent; if measures are in place in his Department to recover fraudulent claims; and if he will make a statement on the matter. [12112/08]

Martin Cullen (Waterford, Fianna Fail)
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The Department undertakes surveys of levels of fraud and error as part of its control strategy, to identify types of claims which should be prioritised for review purposes. The Department is committed to undertaking at least two such surveys annually and these are done in accordance with specific criteria laid down by the Comptroller and Auditor-General (C&AG).

The objective of the surveys is to identify the percentage of cases where the rate of social welfare payment is changed following review, as a result of fraud or error (whether by the claimant or by the Department), and to assess the total cost of overpayments as a percentage of scheme expenditure. When a survey is completed the results are extrapolated and are used to provide an overall fraud and error rate for the scheme in question.

A fraud and error survey for the Disability Allowance (DA) scheme was carried out in 2005, where Social Welfare Inspectors reviewed a random sample of 1,000 DA cases to assess the underlying levels of fraud and error. The result of this survey showed the level of fraud as being 2.3% of Disability Allowance expenditure. The level of 4.7% to which the Deputy refers is the level of error which was assessed in this survey.

A systematic review policy is in place for all DA customers. This policy is reviewed on an ongoing basis to ensure it adequately caters for the control requirements of the scheme. The policy takes account of issues arising from the fraud and error survey, analysis of outcomes from various control projects and also from risk assessment processes.

If, as a result of control activity, an overpayment is identified, this is dealt with in accordance with Sections 334 to 343 of the Social Welfare Consolidation Act 2005 and Regulations 242 to 249 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007, with a view to recovering the overpayment.