€3.9m in welfare savings but fewer checks

The Department of Social Protection’s maintenance recovery unit (MRU) cut the number of cases it reviewed last year by almost 2,700 — yet still delivered estimated savings of nearly €3.9m.

Figures provided by the department show that the MRU reviewed 8,063 cases last year — down from 10,709 in 2013.

Despite the considerable reduction in the initial number of cases inspected, last year’s estimated savings actually increased — from €3.29m in 2013 to €3.89m last year.

While the issue of maintenance payments is a private matter for those concerned and, in some cases, resolved in the family law courts, in cases where the one-parent family payment (OFP) is awarded, the MRU seeks to trace the other parent or “liable relative” in order to determine whether or not they are in a financial position to contribute towards the cost of the OFP.

Of the 8,063 liable relatives contacted last year, 967 were found to be living outside the State or could not be traced, while 558 liable relatives were classified as unknown.

The department said: “The MRU cannot pursue liable relatives who are living outside the Republic of Ireland, or those who cannot be traced based on the information provided by the parent claiming OFP.

“In certain cases, the MRU are advised that some birth parents do not know the other birth parent.”

The initial reviews led to the MRU issuing 2,586 determination orders to liable relatives who were found to have an “apparent ability” to pay maintenance for their children.

Fewer than half of those who received the determination orders, 1,063 liable relatives, then began making payments or additional payments to the lone parent, averaging €48.84 per week. Another 69 liable relatives started paying the department directly. The average weekly payment was €60.64 per week.

The department has estimated that €403,243 in direct cash payments was made last year, while €2,702,664 in OFP payments were disallowed as a result of the MRU investigations.

Another €789,178 is said to have been saved through reduced OFP payments, making a combined total of €3.89m in savings.

A department spokesperson: “This is the amount of control savings following the termination of OFP claims in 2014 considered to be as a direct result of maintenance recovery unit pursuing the liable relatives, and represent an estimate of the value of prevented future social welfare expenditure on claims that would have been incurred if investigative and control work had not been carried out.”

As for the reduction in the number of liable relatives whose cases were initially reviewed, the spokesperson said: “The number of cases dealt with in a period of time can vary but all cases are pursued. Enhancements to the IT system currently in place will result in further automation of processing applications, as well as increasing the number being processed.”

The amount of money provided to an OFP recipient depends on their weekly means.

Changes introduced in recent years means that OFP payment commenced on or after May 3, 2012, continues to a younger age threshold than was previously the case.

For example, the payment is only made up to when a child turns seven in cases where payments only began after last July.