Brendan Ryan (Dublin North, Labour)
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Question 188: To ask the Minister for Social Protection, in view of recent investigations into social welfare fraud, the amount that can be deducted from convicted fraudsters under current legislation; and if she will make a statement on the matter. [21698/11]

Joan Burton (Dublin West, Labour)
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1The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of the Department. 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.

Where overpayments occur, the Department seeks to recover the overpayments in full. In cases of serious fraud, the Department will use all legal avenues open to it to recover the money defrauded.

There is no general prohibition on claiming welfare payments where a person has a conviction, even a social welfare conviction. However, if the sentence involves a period in prison, then s/he would not be entitled to claim any welfare payment for the period of imprisonment.

Under current social welfare legislation and regulations, the basic rate of subsistence to meet the needs of a person, is the basic Supplementary Welfare rate (SWA). The current weekly rate of SWA is €2 less than most main social welfare payments. Persons who have been found guilty of welfare fraud may receive the basic rate of supplementary welfare, provided they fulfil the statutory conditions in the normal manner. Therefore, in cases where a person has no income other than a social welfare payment, the Department can deduct €2 per week in respect of the overpayment. However, depending on the person's means and circumstances, amounts greater than this can be recovered. The Department makes every effort to recoup overpayments in full from all customers.

There is legislative provision which allows for the amount of any other social welfare payment that the person could have qualified for during the period in which the overpayment occurred, to be offset against the amount of that overpayment. However, I introduced an amendment in the Social Welfare and Pensions Act, which was signed into law last month. legislation to ensure that persons who defraud the social welfare system - and who have an overpayment - do not get the benefit of this "offsetting" arrangement.

This new legislative provision ensures that the offsetting of other potential social welfare entitlements during the period in which an overpayment occurred, will only apply to cases where the overpayment did not arise as a result of the person defrauding the social welfare system.