Róisín Shortall (Dublin North West, Labour)
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Question 866: To ask the Minister for Social and Family Affairs her views on introducing a requirement on parents to collect their monthly child benefit payment in person each month instead of by electronic transfer; and if she will conduct a cost benefit analysis to ascertain if a significant saving could be achieved in fraud prevention over and above the extra costs associated with administering such a system. [38618/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The policy of the Department of Social and Family Affairs is to provide the widest possible range of payment options to customers. Of circa 600,000 Child Benefit customers, 60% are currently being paid by Electronic Fund Transfer (EFT) and 40% by card-based Electronic Information Transfer (EIT). EFT is highly cost effective in terms of encashment costs, and over 80% of new claimants currently opt for this payment method.

The control policy for the Child Benefit scheme is continually reviewed to ensure that controls against fraud and abuse continue to be effective and relevant. As a result, enhanced and updated control measures have been devised. These include the issue, on a quarterly basis, of certificates to sub-sets of customers for completion and return to the Department to confirm that they continue to satisfy the conditions for receipt of Child Benefit.

In the case of non-Irish national recipients who are resident in Ireland with their children, certification is requested that the children continue to reside here – the proof of such residence can be provided via details of the school or college their child attends or, if the child is not of school-going age, details of the doctor or crèche they attend. In the case of EU nationals who are working in Ireland but who have qualified children living in another EU state, certification by their employer of continuing employment is requested.

Certificates are issued on a quarterly basis to all customers who qualify for Child Benefit on the basis of employment or residency. Some 80,000 certificates were issued in 2008 and it is estimated that a total of 315,000 will have issued by the end of 2009. Savings in 2008 arising from this exercise were just under €27m. In 2009 to date, savings total €58m and are expected to be in the region of €80m by the end of the year.

It is evident from mailshots issued down the years that EFT does not pose a significant risk in respect of the generality of claimants. The most recent of these was a mailshot issued to 80,000 mainly Irish-national customers regarding the Early Childcare Supplement scheme. A further mailshot issued to 1,500 Irish customers who had not cashed their child benefit payment within the six month period allowed. The level of non-compliance with these mailshots has to date been extremely low - and confirms the findings of a previous Fraud and Error survey. Both of these mailshot projects will conclude in November – when the outcome will inform the nature of further control initiatives.

At this time, I am satisfied that a requirement on parents to collect their monthly Child Benefit payment in person each month - instead of by electronic transfer – is not warranted.