Written answers

Tuesday, 29 June 2010

Department of Social and Family Affairs

Social Welfare Fraud

10:00 am

Photo of Charles FlanaganCharles Flanagan (Laois-Offaly, Fine Gael)
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Question 46: To ask the Minister for Social Protection if he is satisfied with the method of recording and calculating fraud control savings; and if he will make a statement on the matter. [27923/10]

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 54: To ask the Minister for Social Protection the fraud savings target for 2010; the fraud savings received to date; if he will provide an update on fraud control measures put in place by his Department; and if he will make a statement on the matter. [27928/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 46 and 54 together.

The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of the Department. A key objective of the Department's control strategy is to ensure that the right person is paid the right amount of money at the right time. A four-pronged control strategy has been adopted by the Department, 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.

The rapidly changing economic environment with large increases in the levels of unemployed poses challenges for the prevention and effective management of fraud and control. The Department's response to these challenges has been to introduce new measures, which are evidence based, to target control activity at high risk categories of claimants.

Multipliers used in assessing control savings estimate the total future savings to the Department of a revocation of or reduction in a payment resulting from a control action. The multiplier used is based on the average amount of time persons who ceases to claim remain off payments before returning. This time varies from scheme to scheme.

Control Division carry out validation exercises to ensure control savings are recorded correctly. These involve an examination of the various control savings reported to ensure that savings are being compiled and calculated in the correct manner i.e. in accordance with the guideline for determining control savings. The methodology is kept under review. I am satisfied that control savings provide valid, useful and comparable measures of progress towards achieving results.

A target of €533.3 million was set for control savings in 2010. On the basis of what has been recorded to the end May 2010 control activity has yielded savings of €110.83million. However the work to rule measures in the Department have impacted on the reporting of the value of control activities.

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.

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