Written answers

Wednesday, 29 May 2013

Department of Social Protection

Social Welfare Fraud Cost

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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46. To ask the Minister for Social Protection the savings that were made in fraud detection in 2012; the way this figure compares with 2011; the savings that were made through fraud detection in Q1 2013 and the way this figure compares with Q1 2012 and with Q1 2011; and if she will make a statement on the matter. [25637/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Department’s control savings targets for 2011 and 2012 were €540m and €645m respectively. In the two years in question, amounts of €645m and €669m in control savings were recorded as achieved by year end. The savings target for 2013 is €710 million which is an increase of €40m on the savings achieved in 2012.

Control savings are an estimate of the value of the various control activities across the schemes in payment. Control savings refer to future expenditure that would have been incurred but for this control work. Without this control work the social welfare expenditure would over time increase by this amount. Control savings are used as a performance indicator for year-on-year activities. Control savings do not include any cases of departmental or clerical error. Control savings do not include any cases where the customer voluntarily told the Department of their means or circumstances, which resulted in a change to their rate of payment. The Department does not classify control savings as a result of fraudulent activity.

The table below gives a breakdown of the control savings recorded for Q1 2011, 2012 and 2013. Savings on a monthly or quarterly basis can vary as some control activity is recorded on an on-going basis while other project activity is only recorded when the project is completed and these projects can vary in scope and timeframe from year to year.

Q1 FiguresSavings recorded €m
Q1 2011136.18
Q1 2012202.22
Q1 2013132.47

Actual money recovered arises where the Department raises overpayments in individual cases. Overpayments raised by the Department are categorised as ‘fraud’, ‘non-fraud’ or ‘estate’ cases. Fraud cases arise mainly on foot of false declarations by customers concerning their employment, income and family status. Non-fraud cases are primarily due to customer or third party error, with some due to Departmental error. Estate cases arise where undisclosed means by customers come to light after their deaths.

In 2011 a total of €92.4m was raised in overpayments and of this amount, €34.9m was recorded as attributable to fraud or suspected fraud. The Department is not in a position to publicly report on overpayments recorded in 2012 as these figures form part of the statutory accounts of the Department and are subject to audit by the Office of the Comptroller and Auditor General.

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