Written answers

Thursday, 1 March 2012

Department of Social Protection

Social Welfare Fraud

5:00 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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Question 57: To ask the Minister for Social Protection if she will emphasise the actual values attributable to fraud in real money and that which is down to error; if her attention has been drawn to the social and psychological impact that the depiction of welfare fraud via the media has on persons who are depending on social welfare to make ends meet as a result of the economic crisis, disability, age or caring responsibilities; and if she will make a statement on the matter. [11873/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of the Department which administers over 70 schemes. It processes in excess of 2.5 million applications per annum and issues over 85 million payments per year to 2.2 million customers and their families. I am fully conscious that the vast majority of people are receiving the entitlement due to them. However, the country is experiencing a very serious recession and as one of the largest spending Departments, we have to take the necessary steps to ensure that all public money is accounted for appropriately.

Social welfare fraud is not a victimless crime, it undermines public confidence in the system as well as being unfair to other social welfare recipients, to the taxpayer and to businesses being run on a legitimate basis. It is against this backdrop that I have asked my Department to step up its efforts to target fraud. To prove fraud requires careful investigation of the case, establishment of the facts often under a cautioned interview, a disallowance of payment by the deciding officer and the setting up of an overpayment in respect of the historical period, where that is possible. In 2010, total overpayments amounted to €83.4m which represented 0.41% of total Departmental expenditure. Overpayments arising from activity suspected of being fraudulent amounted to €25.9m in 2010. The overpayments figures for 2011 will not be available until audited by the Comptroller and Auditor General.

The following is the full breakdown of the classification of 2010 overpayments:

2010 OP's% of total OP's
Suspected Fraud€25.9m31%
Customer 3rd Party Error€42.4m51%
Dept Error€5.2m6%
Estate€9.9m12%

My Department's Fraud Initiative takes a revised and renewed approach to the challenges posed by social welfare fraud. The ambition is to ensure that the approach to social welfare fraud is seen as tough but fair, with appropriate sanctions in place to those who perpetrate fraud. I am very aware that the vast majority of people turn to my Department for support at a time of need in their lives and I want to ensure that our reduced resources are available for these people.

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