€111.6m welfare fraud exposed

AN intensive review of social welfare pay-outs has uncovered a staggering €111.6 million in fraud in the first three months of this year alone.

New anti-fraud measures had been drawn up with a view to saving the taxpayer millions in lost revenue, Minister for Social and Family Affairs Mary Coughlan said yesterday.

Total savings on fraudulent pay-outs were up by more than 16.8m on the previous quarter.

"These savings result from normal reviews carried out by this department and the work of departmental staff engaged in investigative work," the minister said.

"Fraud and abuse represent a misuse of taxpayers' money and I intend to ensure that the department's efforts are directed at ensuring that social welfare funds go only to those who are entitled to them," Ms Coughlan added.

Savings in One-Parent Family Payment realised the most at almost €35m, followed by more than €30m in Unemployment Payments and over €15m in Illness payments.

About 85% of the 1,462 employers who underwent PRSI inspections were found to be compliant.

Almost 80,000 claim reviews were carried out.

Of these, a total of 137 cases were forwarded to the Chief State Solicitor's office for the initiation of prosecution proceedings. Some 85 cases were finalised in court of which two claimants were served with prison sentences.

Total social welfare expenditure for 2003 reached €10.5 billion. More than 928,000 people received a weekly welfare payment.