Prevention of welfare fraud saves Exchequer €500 million

More than €500 million was saved for the Exchequer last year through recovered overpayments and the prevention of welfare fraud.

The Department of Social Protection's Annual Report and Target Statement for 2016 records savings of almost €464m in welfare expenditure through the prevention of fraud and error, while €83 million in overpayments was recovered.

Minister for Social Protection Joan Burton released the report on Friday and said the resources of the department “are there for people genuinely in need”.

“The department’s objective is to ensure that it pays the right amount of money to the right person at the right time,” she said. “I have always championed the welfare system as a safety net for those who need it most.

“It’s precisely why over the past number of years I have put in place measures to tackle fraud and abuse in the system, so that resources are there for people genuinely in need.”

The Department of Social Protection is targeting savings of €510 million this year by reviewing one million claims and “rooting out fraud and error” where it occurs. In terms of overpayments, the department will aim to recover €90 million during 2016.

Ms Burton said her department would be focusing on new technology to combat welfare fraud going forward. “We must remain alert to new and emerging forms of fraud and abuse and so our approach needs to be flexible and dynamic,” she said.

“In this context, a key aspect of the strategy will be the use of new technology and co-operation with other agencies such as the Revenue Commissioners.”

She added that members of the public “have played their part” as more than 15,700 reports were made to the Department last year expressing concerns about possible incidents of welfare fraud.

The use of predictive analytics was introduced during 2015 to further enhance the Department’s ability to detect and reduce fraud. Other technological innovations include the use of facial recognition software and the use of the Public Services Card.