Dáil Éireann Debate, Tuesday - 15 June 2004
90 Mr. Quinn asked the Minister for Social and Family Affairs the efforts her Department is making to prevent fraudulent social welfare claims; the amount her Department estimates has been claimed fraudulently here for each of the past three years; and if she will make a statement on the matter. [17716/04]
Amharc ar fhreagra118 Mr. Eamon Ryan asked the Minister for Social and Family Affairs the payments from her Department which are most subjected to fraud; and the extent to which. [17730/04]
Amharc ar fhreagraI propose to take Questions Nos. 90 and 118 together.
Fraud against the social welfare system arises in a number of different ways. In some instances persons claiming social welfare payments make false declarations or conceal material facts in order to obtain payment. In other cases there is deliberate failure to notify the Department of a change in circumstances or failure by an employer to comply with PRSI regulations.
The control strategy of my Department which was revised in 2003 provides for a three-pronged approach to control: prevention — having systems and procedures in place that prevent and minimise the risk of incorrect payments, fraud and abuse; detection — detecting incorrect payments, fraud and abuse of schemes and unpaid PRSI contributions by employers and the self-employed at the earliest possible stage; and deterrence — ensuring that the public are aware of the risks and penalties of defrauding the social welfare system and dealing decisively with cases of fraud and abuse detected, including prosecutions where necessary.
This strategy entails the use of a mix of measures to control fraud and abuse. These include desk review of claim papers, home visits, the issue of mailshots to selected claimants, database checking and employer inspections and medical reviews in the case of illness payments. The detection of fraud and abuse of the social welfare system is an integral part of the day-to-day work of my Department. The work of all staff who are engaged in any aspect of claims processing is to some degree concerned with preventing and detecting fraud and abuse.
There are some 600 staff at local, regional and national level whose work is entirely or significantly related to the control of fraud and abuse of the social welfare system. Some 300 of these are responsible for routine investigations under the various schemes and for reporting on and following up suspected cases of fraud where they are discovered. As a result of control activities carried out by these staff, savings of €851 million were achieved during the years 2001, 2002 and 2003.
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 of a change in circumstances, which may not have 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 also checked on an ongoing basis to verify continued compliance with such requirements as being available for and genuinely seeking employment. The Department also has a programme of employer inspections to ensure compliance with the provisions relating to PRSI.
The control programme is carefully monitored and the various measures are continuously refined to ensure that they remain effective. The total amount of overpayments set up as a result of detected fraud or suspected fraud for the years in question was €11 million in 2001, €11.8 million in 2002 and €13.7 million in 2003. The payments most subjected to fraud for these years were those paid to unemployment recipients which accounted for €6.4 million — 58% — in 2001; €8.1 million — 69% — in 2002; and €9.7 million — 71% — in 2003.
It is my Department's policy to seek recovery of all moneys incorrectly paid and every effort is made to recover overpayments in full, having regard to the provisions of a code of practice which is in place to regulate this process. Overpayments which result from fraud are given greatest priority and their recovery is vigorously pursued.
Plans are being put in place for a new central overpayments and debt management system within my Department. When fully operational, this will provide a facility to enhance the targeting of control work, make overpayment recovery more effective and provide better and more up to date information on the main types of fraud occurring within the schemes.
My Department's policy is to consider all cases of fraud for prosecution and revised prosecution guidelines were issued to staff in February 2003. The issue of these guidelines has had a significant impact on the number of cases submitted to the Chief State Solicitor's office to initiate prosecutions during the period in question — 177 in 2001; 245 in 2002 and 405 in 2003. Current trends indicate that there will be some 600 such cases in 2004.
I am committed to ensuring that social welfare payments are available to those who are entitled to them and that they are delivered in an effective and efficient way. I am also determined to ensure that abuse of the system is prevented and is dealt with effectively when detected and I will take whatever steps are necessary to achieve this.
