Denis Naughten (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context

Question 210: To ask the Minister for Social and Family Affairs the savings made to date in 2009 by her Department as a result of fraud detection; if she will achieve her Departmental target by year end in 2009; and if she will make a statement on the matter. [40839/09]

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

At the end of September 2009, the Department recorded control savings of nearly €355m, which is 78% of the year to date target of €453m. The annual control target for 2009 is €616.5m. It is difficult to project what the control savings for 2009 will be at this point but it is unlikely that the Department will reach the control savings target of €616.5m.

It must be noted that control activity is currently being focused on prevention of fraud and error at claim application stage. Savings made from the detection of bogus claims at application stage cannot be estimated as the claim will not go into payment. However, this is the most cost effective mechanism of reducing losses through fraud and error in social welfare schemes.

The significant increase in the live register has impacted on the Department's capacity to review claims. The increase has put pressure on staffing resources and particularly on social welfare inspectors who are responsible both for carrying out means-tests on initial applicants and conducting anti-fraud inspections.

The Department's response to these challenges has been to introduce new measures to target control activity at high risk categories of claimants. For example: Control activity is being focused on the prevention of fraud and error at claim application stage. The Special Investigation Unit is undertaking more regular interviews of jobseeker recipients, particularly those with high risk ratings. As a preventative measure the option to receive payments by Electronic Fund Transfer (EFT) was removed for new claimants for jobseeker payments. They must attend in person at the post office each week thus confirming their continued residency in the country. Their claim is automatically suspended where two consecutive payments are not collected. Border regions have put an increased emphasis on controls on claims from applicants with a previous address in Northern Ireland. One Parent Family Payment recipients with earnings are targeted for on-going review. The frequency of issue of mail shots to validate continued entitlement to Child Benefit has been increased to 3 monthly intervals for EU worker customers and resident non-Irish national customers. The number of anonymous reports from members of the public has increased dramatically in the past year, with over 4,600 reports made at end September 2009 compared to approximately 1000 reports made in 2008. Each report is followed-up. The Department is moving to a risk-based system which will achieve better value for money by focusing scarce resources on the most appropriate cases. For example for Disability Allowance, a new control review policy for the scheme was introduced in January 2009 which involves assigning and recording a risk rating at the award and review stage of all claims in the medical and means categories. A similar risk based control review policy is being piloted for Carer's Allowance with the same approach planned for Invalidity Pension. New data matches have been initiated to effectively target reviews and generate savings. In 2009 data was received from The Personal Injuries Assessment Board, The Commission for Taxi Regulation, The Criminal Injuries Compensation Tribunal and Local Authorities. In addition agreement has recently been reached with The Revenue Commissioners for data on capital assets.

The Department is committed to ensuring that social welfare payments are available to those who are entitled to them. In this regard the control programme of the Department is carefully monitored and the various measures are continuously refined to ensure that they remain effective.