The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of my Department which processes in excess of 2 million claims each year and makes payments to some 1.4 million people every week. However, it is important to recognise that the vast majority of people are receiving the entitlement due to them.
When a customer makes an application for any social welfare payment they are provided with a detailed information booklet in addition to the application form. This booklet clearly outlines the conditions for eligibility for the particular scheme. The application form further outlines these conditions and requires the applicant to sign a declaration to the effect that they will notify the Department if they no longer fulfil those conditions or if their means or circumstances change in a manner which would affect their payment.
In addition, when a claim is awarded, a decision letter is issued to the customer which outlines the fact that they are required to notify the Department of any changes in their means or circumstances which may affect their payment. When a claim is reviewed at a later date, the customer is again asked about their means and circumstances and informed that they must notify the Department of any changes.
Where, following a review of a claim in payment, it is confirmed that the customer had been receiving a payment to which they were not entitled, or were receiving a payment at a higher rate than they were entitled, a deciding officer makes a revised decision on the entitlement. Deciding officers decide the effective date of a revised decision having regard to the new facts or new evidence and the circumstances of the case. This can result in the assessment of an overpayment.
Fraud overpayment cases arise mainly on foot of false declarations by customers concerning their employment, income or family status. Non-fraud cases are primarily due to customer or third party error or departmental error. In the case of customer error, the customer had not fully disclosed their full means or circumstances, but the deciding officer decides it was an error or oversight by the customer, not wilful concealment or fraud. Estate cases arise where undisclosed means by customers (usually pensioners) come to light after their deaths.
The Department is fully committed to recovering 100% of overpayments arising as a result of suspected fraud or error. Effective debt recovery is seen as an integral part of the deterrent to fraudulent claiming. Debt holders should be aware that a debt owing to my Department will remain on their records until fully recovered. This will result in a reduction of all future entitlements up to and including state pension. Following the death of a customer who owes a debt, the Department has a claim on any estate remaining. Persons who have a debt and who are not longer dependent on social welfare are required to repay this debt as quickly as possible. The Department actively pursues the recovery of all overpayments including the initiation of civil proceedings where appropriate.
The Deputy should note that I recently launched a new Fraud Initiative (2011-2013) which is aimed at putting in place a range of actions to combat fraud and abuse of the social welfare system and to ensure there is public confidence and trust in the system. Given this enhanced approach, the Department plans to increase the level of debt recovery by reviewing the overall approach, particularly in the context of overpayments that have arisen from suspected social welfare fraud. While the details, including in particular legal requirements, will have to be examined closely, a range of options will be explored under this initiative with a view to both minimising overpayments and increasing recoveries. The consideration of all options in these areas has of course to be balanced, clearly taking into account the core income support and social inclusion purpose of social protection payments.