The child benefit scheme has, in recent years, experienced significant expansion in the volume of claims received, the rates of payment and the diversity of the customer base. The annual cost in 2008 was approximately €2.46 billion and the payment is now made for children of some 190 nationalities living in Ireland.
Against this background, the control policy for the child benefit scheme has been reviewed to ensure that controls against fraud and abuse of the scheme continue to be effective and relevant. As a result of the review, enhanced and updated control measures have been devised. These include the issue, on a quarterly basis, of certificates to sub-sets of customers for completion and return to the Department to confirm that they continue to satisfy the conditions for receipt of child benefit. Claims are normally registered to the mother and, as the person receiving the benefit, it is her nationality that dictates the status of the claim.
In the case of non-Irish national recipients who are resident in Ireland with their children, certification is requested that the children continue to reside here — the proof of such residence can be provided via details of the school or college their child attends or, if the child is not of school-going age, details of the doctor or crèche they attend. This information is used to verify that the children are resident in Ireland, and for no other purpose.
In the case of EU nationals who are working in Ireland but who have qualified children living in another EU state, certification by their employer of continuing employment is requested. Again, this information is not used for any other purpose.
In 2008 some 80,000 certificates issued to non-Irish customers who qualify on the basis of employment or residency. In the course of this exercise, it transpired that some 24,000 had changed residence of which 8,000 had left the country and did not therefore have entitlement to benefit. Certificates are now issued on a quarterly basis to all customers who qualify for child benefit on the basis of employment or residency. Some 80,000 certificates were issued in 2008 and 315,000 is the likely total issuing in 2009. The cost is an estimated €1 per transaction — including a postage-paid envelope for the customer's reply. Savings in 2008 arising from the issue of the certificates were just under €27 million. In 2009 to date, savings are €58 million and are expected to be in the region of €80 million by the end of the year.
The issue of certificates to Irish national customers is being assessed in the light of some recent mailshots. A mailshot issued to 80,000 mainly Irish-national customers, concerning the early childcare supplement scheme. Some 1,000 were returned undelivered and the claims were suspended. The number remaining suspended is 290 and investigation of these claims is continuing. A mailshot was also issued to 1,500 Irish customers who had not cashed their child benefit payment within the six month period allowed. Replies are awaited in 51 of these cases. Both these mailshot projects will conclude in November — when the outcome will inform the nature of further initiatives.
Regarding the Deputy's suggestion concerning cross-referencing with current records on the Revenue, schools and unemployment sides, work is in progress to match records of those signing-off unemployment against the child benefit file and it is expected that this system will soon be operational. The records on the Revenue and Department of Education and Science sides only provide a yearly snapshot as of the end of the tax year or the start of the school year and are not therefore suitable for establishing the position regarding employment or school attendance in individual cases. The issue of certification forms is monitored on an ongoing basis in the Department.