John Perry
Question:57 Deputy John Perry asked the Minister for Social Protection the estimated cost to the State of social welfare fraud on an annual basis; and if he will make a statement on the matter. [43802/10]
View answerTuesday, 23 November 2010
Questions (44)
Written answers
A key objective of my Department's control strategy is to ensure that the right person is paid the right amount of money at the right time. The emphasis is to minimise risks of fraud and eliminate incorrect payments. A four-pronged control strategy has been adopted by my 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. The increase in the levels of people unemployed arising from the economic turmoil, poses challenges for the prevention and effective management of fraud and control. My Department's response to these challenges has been to introduce new measures, which are evidence based, to target control activity at high risk categories of claimants.
Overpayments raised by my Department are categorised as ‘Fraud', ‘Non-Fraud' or ‘Estate' cases. ‘Estate' cases arise where undisclosed means by customers (usually pensioners) come to light after their deaths. ‘Non Fraud' cases are primarily due to customer or third party error, with some due to departmental error. ‘Fraud' cases arise mainly on foot of false declarations by customers concerning their employment, income and family status.
The overpayments reported in the year 2009 are as follows:
|
Fraud |
Customer/ Third Party Error |
Departmental Error |
Estate |
Total |
|
|
Total 2009 overpayments |
€20,200,506.13 |
€30,831,055.10 |
3,856,763.78 |
€10,622,808.64 |
€65,511,133.65 |
Overpayments arise in relation to past events where a deciding officer has sufficient evidence that a person has been paid an amount in excess of their entitlement for a given period, either through payment at a rate above that which they should receive or where they are paid beyond the relevant date. As such, overpayments reported in 2009 will not exclusively represent suspected fraudulent activities of that year.
I am committed to ensuring that social welfare payments are available to those who are entitled to them. In this regard, the control programme of my Department is carefully monitored and the various measures are refined to ensure that they remain effective. Fraud detection measures have increased and improved significantly over the last number of years and will be continuously reviewed to prioritise resources towards achieving results.