Dáil Éireann Debate, Wednesday - 22 February 2012
158 Deputy Barry Cowen asked the Minister for Social Protection if she will provide an overall estimate of the percentage of fraud as a part of overall social welfare expenditure and a table breaking it down by social welfare scheme. [10310/12]
View answer159 Deputy Barry Cowen asked the Minister for Social Protection her plans for regular surveys of fraud across various welfare schemes; the details of such plans; if she has been in communication with the Comptroller and Auditor General regarding regular surveys; and if she will make a statement on the matter. [10311/12]
View answer163 Deputy Barry Cowen asked the Minister for Social Protection if she will clarify the procedures used by her Department to distinguish between fraud and error; the welfare areas this applies to; and if she will make a statement on the matter. [10315/12]
View answer166 Deputy Barry Cowen asked the Minister for Social Protection her plans to develop a mechanism or process to measure the total amount of fraud and error across the whole social welfare system; and if she will make a statement on the matter. [10318/12]
View answerI propose to take Questions Nos. 158, 159, 163 and 166 together.
Fraud and error surveys are an integral part of the Department's overall approach to control and tackling social welfare fraud. They provide the Department with an indicator of the estimated risk of non-compliance with scheme rules within the specific schemes surveyed and enable it to enhance procedures and processes to build control across the relevant schemes. The Department establishes the risk and exposure of fraud and error within its schemes by conducting fraud and error surveys at regular intervals.
The Department has been in communication with the C&AG over the past number of years regarding these surveys. Last year, the Department agreed specific criteria with the C&AG for the successful implementation of baseline fraud and error surveys to ensure that they are representative across all scheme criteria. The survey process involves social welfare inspectors reviewing a random sample of claims (usually in the region of 1,000) to assess the underlying levels of fraud and error. The inspectors interview the customers in each case and carry out a comprehensive review of their current circumstances and means where relevant.
The files are then referred to Deciding Officers in the relevant scheme area who decide whether the rate in payment is correct or whether it should be increased, reduced or terminated, depending on the full facts and circumstances.
A Deciding Officer may decide that a case is one of suspected fraud where it appears to him/her that the customer knowingly gave false or misleading information or wilfully concealed relevant information. In other cases, the Officer may be of the view that the customer inadvertently failed to notify the Department of the relevant change in means or circumstances. Such cases are recorded as customer error. Departmental error overpayments are recorded where the error was due to clerical, systems or administrative error.
The outcome of those surveys is examined by the Department and appropriate action is then taken by scheme managers to address the fraud and error risks identified. Furthermore, the review policies and risk management procedures of the schemes are then revised to take account of the risks identified.
The following table shows the results of the fraud and errors surveys undertaken over the past number of years on the various schemes, along with the estimated fraud as a percentage of social welfare expenditure on these schemes.
|
Scheme |
Survey Date |
Estimated Fraud as % of Expenditure on Scheme (based on F&E surveys) |
|
Child Benefit |
Nov 04 |
1.76 |
|
Family Income Supplement |
Aug 05 |
0.8 |
|
Disability Allowance |
Nov 05 |
2.3 |
|
Illness Benefit |
Sep 06 |
0.1 |
|
State Pension (non-contributory) |
May 07 |
0 |
|
One Parent Family Payment |
Sep 07 |
6.4 |
|
State Pension (contributory) |
Apr 08 |
0.1 |
|
Jobseekers Allowance |
Oct 09 |
2.1 |
Surveys have been carried out on disability allowance, one-parent family payment and jobseekers benefit over the past two years and I expect that the results of those surveys will be available shortly.
In September 2011, I published my Department's Fraud Initiative (2011-2013) which included a commitment to carrying out two fraud and error surveys per year. The proposed medium term programme of surveys to be undertaken over the next five years — as set out in the plan — is set out as follows. To allow for required flexibility, the position will be reviewed annually. It is also worth noting that additional or varied surveys may be required given specific business needs and emerging trends.
|
Year |
Month |
Scheme |
|
2011 |
May |
One-Parent Family Payment |
|
Sept |
Jobseeker’s Benefit |
|
|
2012 |
April |
Child Benefit |
|
Sep |
Jobseeker’s Allowance |
|
|
2013 |
Apr |
Invalidity Pension |
|
Apr |
Illness Benefit* |
|
|
Sep |
Widows/widower’s and surviving civil partners contributory pension |
|
|
2014 |
Apr |
Family Income Supplement |
|
Apr |
Free Schemes |
|
|
2014 |
Sep |
Carer’s Allowance |
|
2015 |
Apr |
State Pen Non-Con |
|
Sep |
State Pen Con |
|
|
2016 |
Apr |
Disability Allowance |
|
Sep |
One-Parent Family Payment |
