Minister hails €200m saved in welfare-fraud crackdown

Measures to control abuse of the social welfare system have ensured €200m has been saved from fraudsters so far this year, it emerged today.

The Department of Social Welfare said the savings had been achieved by constant vigilance and by focusing on schemes with a high risk of abuse.

Over €62m was saved through stopping illegal claims for unemployment benefit, followed by more than €49m in one-parent family payments and over €30m in illness payments.

Around 170,000 claim reviews were carried out in the first six months of the year, with 87% of the 2,129 employers inspected found to be compliant.

Minister for Social Welfare Seamus Brennan said every euro obtained by fraud was a euro taken away from those who urgently need support.

Around 975,000 people claim weekly social welfare payments, supports and entitlements.

“Overall, almost 1.5 million people, including dependants, will benefit from these payments. That is two out of every five people in the state who are, in one way or another, receiving vital welfare supports and availing of the safety net these provide.

"For that reason it is vitally important that my department’s resources are targeted at those most in need. We must reach the right people, with the right supports and at the right time,” Mr Brennan said.

The department warned prosecution of offenders was a key element of its approach to controlling the system.

Around 166 cases have been sent to the Chief State Solicitor’s office for proceedings to be initiated in the first six months of the year.

Around 144 cases ended up in court. Nine people were given suspended sentences, 50 were fined, seven received community service and 27 were given the Probation Act.

Mr Brennan said his department’s priority was to ensure those entitled to supports receive them, and that people who knowingly defraud the system are identified.

“The saving of €200m has been achieved by constant vigilance and by focusing on schemes with a high risk of fraud and abuse. I am 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.

"It must be stressed that every euro obtained knowingly through fraud is a euro taken out of the pockets of those most in need of a welfare lifeline,” he said.

Officials said abuse of the system occurs in a number of different ways. In some cases, people make false declarations or conceal information in order to obtain payments.

However, some people deliberately fail to notify the department of a change in circumstance or employers do not comply with PRSI regulations.

More than 600 workers are engaged on a full or part-time basis on work related to the control of fraud and abuse of the social welfare system.

The measures to control fraud and abuse include desk review of claim papers, home visits, the issue of mail-shots to selected customers, database checking and medical reviews in the case of illness payments.