Written answers

Thursday, 13 October 2011

Department of Social Protection

Social Welfare Fraud

2:00 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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Question 9: To ask the Minister for Social Protection if she will consider introducing an amnesty for persons who become aware that they are in receipt of an overpayment through no conscious fault of their own in view of the fact that this would encourage more persons to bring their case to the attention of their social welfare officer without fear which would consequently give rise to Exchequer savings. [29051/11]

Photo of Sandra McLellanSandra McLellan (Cork East, Sinn Fein)
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Question 16: To ask the Minister for Social Protection her views that the issue of welfare fraud has been exaggerated by some in the media (details supplied) with knock-on negative consequences for the public's understanding and confidence in the system; and the steps she will take to ensure that the issue is reported in a more measured way. [29050/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 9 and 16 together.

In 2010, total overpayments amounted to €83.4 million representing 0.41% of total Departmental expenditure. Overpayments arising from suspected fraudulent activity amounted to less than 0.1% of total Departmental expenditure in 2010. It is important to emphasise, therefore, that the vast majority of people are receiving the entitlement due to them each week, a point that tends to be lost in some of the media reports around this issue.

There are essentially 3 elements to the work of the Department namely income support payments, activation support and services, and control of fraud and abuse. It is vital that a balance is maintained between these 3 elements and that any initiatives in the control area take full account of income poverty. As I have said on a number of occasions, the Department processes in excess of 2 million applications each year and makes payments to some 1.4 million people each week. I want to emphasise that the vast majority of people are receiving the entitlement due to them. I therefore agree with the Deputy that issues in relation to fraud and abuse should always be reported in a fair and balanced way.

The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of the Department. As the Deputies may be aware, I recently launched a new Fraud Initiative (2011 – 2013) which is aimed at putting in place a range of actions to combat fraud and abuse of the social welfare system and to ensure that public confidence in the system is improved.

Those customers who are aware that they are being, or have been, overpaid by the Department should contact their local social welfare office without delay. An overpayment recovery plan, acceptable both to the customer and to the Department, will then be agreed. I therefore have no plans to introduce an amnesty for customers as suggested by the Deputy as I do not consider this to be an appropriate response. The Department is fully committed to recovering 100% of overpayments arising as a result of suspected fraud or error. Effective debt recovery is seen as an integral part of the deterrent to fraudulent claiming.

Most social welfare customers fully declare their means and circumstances and, therefore, do not receive more than their entitlements. From an equity perspective, it is also important that the Department seeks to recover overpayments where they occur. An overpayment debt will remain on the customer's records until fully recovered. This will result in a reduction of all future entitlements up to and including state pension. Following the death of a customer who owes a debt, the Department will have a claim on any estate remaining.

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