Dáil Éireann Debate, Tuesday - 16 July 2013
658. Deputy Kevin Humphreys asked the Minister for Social Protection the amount saved in the year to date from additional fraud and control measures as indicated at Budget time; and if she will make a statement on the matter. [35494/13]
View answer659. Deputy Kevin Humphreys asked the Minister for Social Protection the amount recovered from overpayments to citizens in the year to date; if legislation has been implemented to date; if her Department is is on schedule to meet projected savings; and if she will make a statement on the matter. [35495/13]
View answerI propose to take Questions Nos. 658 and 659 together.
The Department’s control work is measured in terms of control savings and they are used as a performance indicator for year-on-year activities. Control savings are an estimate of the value of the various control activities across the schemes in payment and refer to future expenditure that would have been incurred but for this control work. Without this control work, social welfare expenditure would over time increase by this amount. Control savings do not include any cases of departmental or clerical error or any cases where the customer voluntarily told the Department of their altered means or circumstances, which resulted in a change to their rate of payment. These activities also have a deterrent or knock-on effect, which are not readily quantifiable in monetary terms.
Controls are exercised at both the initial claim stage and at subsequent stages during the claim life cycle. Claims are reviewed on a regular and targeted basis. Means-tested payments are reviewed at certain intervals or when there are indications that changes in circumstances have not been reported to the Department. Those in receipt of illness payments are called for a medical examination by the Department's medical assessors. Customers in receipt of unemployment payments are checked on a regular basis to verify continued compliance with such requirements as being available for and genuinely seeking employment.
Current measures to control fraud and abuse also include desk reviews of claim papers, home visits, the issue of mail-shots to selected customers, database checking and data matching with other organisations.
In addition, the Department’s Special Investigation Unit focuses on planned and systematic control activity and projects. The concentration is on those schemes and sectors where the incidence of social welfare fraud is most pronounced. It works in conjunction with other agencies to tackle social welfare fraud and abuse.
Furthermore Intreo, the integrated employment and support service currently being rolled out across the Department’s local office network, comprehensively seeks to activate and review customers, where up to now three separate agencies had this role. Arising from this, a more integrated approach to fraud control can now be realised.
The roll out of the Public Service Card is also well under way. From the Department’s perspective, the PSC gives significant assurance as to the identity of the cardholder as it is a secure card and will considerably reduce the potential for forgery and identity fraud.
The Department recorded control savings of €669 million in 2012. The savings target for 2013 is €710 million, an increase of over €40 million on 2012. A total of just over €240 million was recorded in respect of control savings from January to end of May 2013. I expect that the Department will achieve the target set for this year.
The overall goal of the Department in relation to debt management is to actively pursue the recovery of debt to maximise recovery levels, with due regard to value for money. All debts currently owing to the Department, as a result of benefits received in excess of entitlement, are repayable in full. The Department does not apply interest or penalties on the amounts owing.
Customers who have received an overpayment from the Department have a liability to refund the overpayment. The Social Welfare Act, 2012 introduced a provision allowing the Department to make a recovery from an individual’s social welfare payment measuring up to 15% of their weekly personal rate. The deduction of 15% applies to the person’s personal rate only, and does not affect payment of any adult or child dependent allowances, or any other allowances that are in payment. It allows the person to retain 85% of their personal rate of payment. In each case, the person is informed of the Department’s intentions and given the opportunity to comment before a final decision is made on the level of deduction to be applied.
The volume of debtors to the Department repaying their debt has increased by approximately 20% in the first six months of 2013. As recoveries are reported on an annual basis only, a figure for the amount recovered in the first six months of this year is not available.
