Welfare fraud savings target missed

THE Department of Social Protection missed its target for savings from welfare fraud last year, despite a serious crackdown on areas including cross-border fraud and disability benefit.

Figures from the department show that some €483 million was saved last year as a result of fraud control — 91% of the target for the year of €533.31m.

While the savings fall below the target, the department said that the €483m figure is likely to be an underestimate, as industrial action prevented the proper recording of some savings last year.

The new Government has made tackling welfare fraud one of its key aims at making savings for the public purse. Among the findings contained in last year’s figures:

* More than half of those who applied for Disability Allowance in 2010 were turned down — some 10,316 prospective claimants.

* 6,600 cases on both sides of the border were checked to ensure claimants were not receiving benefits both north and south.

* Just 42% of all liable relatives referred to the department’s Maintenance Recovery Unit (MRU) were contributing towards the cost of maintaining their spouse, partner or child.

* More than 600 have either had their Carer’s Allowance cut or reduced either through overpayment by the department or was wrongfully claimed.

Regarding the high rate of refusal involving Disability Allowance (DA) claims, the department said that 54% of the 19,248 claims made last year had been turned down due to not having satisfied one or more of the conditions for receiving the payment.

Many of those cases enter the review system, where additional information can be provided, but the People with Disabilities Ireland (PWDI) group said the pressure on the social welfare system was making life difficult for applicants.

Morgan McKnight, chief executive of PWDI, said: “[The Department of Social Protection] are tightening up on everything.”

He said some clients faced “an administrative nightmare” amid claims of a delay in the review process through a shortage of appeals officers. However, he said in cases where the DA is refused, other benefits, including emergency welfare payments are available.

The departmental figures also show that industrial action last year also affected the gathering of statistics for DA claims terminated from the last week of January to the end of June.

However, in the first three weeks of January and the last six months of last year 251 people had their DA claims cut.

Regarding the determination orders issued by the Maintenance Recovery Unit (MRU) for support payments to ex-partners and children, the Department said €693,719 was recovered in maintenance owed, along with a further €3m in savings.

Details of 13,145 liable relatives were received and recorded and 5,598 of those were making contributions.

At the end of last year 13 cases were with the Chief State Solicitors Office at various stages of the legal process.