Jobseeker error and fraud cost State up to €140m last year

Fraud and error in jobseeker social welfare claims cost the State almost €140 million last year, according to the Comptroller & Auditor General’s report.

It estimated a loss, through error or fraud, of €2.68 million a week for the payment, which is claimed by 295,000 people.

The 230-page document from the State’s financial watchdog also showed mistakes or illegal claims worth €190,000 a week, or almost €10 million for the year, in the widow/widower/surviving partner pension.

Error or fraudulent claims in rent supplement payments cost the exchequer €20 million, it said.

The report came from the office of Seamus McCarthy, who has responsibility for the audit of public funds, and surveyed almost 1,000 recipients of jobseeker’s allowance. It deemed 85 per cent of these satisfactory. Customer error was found in 119 cases, departmental error in nine cases and fraud in 21 cases.

Net fraud

Errors and fraud in rent supplement amounted to €390,000 weekly based on the report figures. A total of €377 million was paid last year to 80,000 people whose incomes could not cover their entire rental costs.

The audit found a net fraud or error rate of 5 per cent, compared to 5.8 per cent in the UK in rent supplement. The survey showed 55 cases of customer error, 67 errors made by the Department of Social Protection and 38 cases of suspected fraud. A total of 84 per cent of cases were deemed satisfactory.

Of the 947 cases surveyed in the widow/widower/surviving partner contributory pension scheme, four cases of fraud were identified where claimants either remarried, moved in with a new partner or failed to disclose other sources of income when claiming fuel allowance.

The weekly fraud or error, estimated at €190,000, also included 37 cases of customer error and 36 cases where departmental error was responsible.

Robust

Minister for Social Protection Joan Burton said in response to the report that the department "takes a comprehensive and robust approach to combating fraud and abuse and ensuring the welfare budget goes to those who need it".

“While the majority of people only claim what they are entitled to, fraud and abuse is a reality which we are tackling on a number of fronts,” she said. She added that the department was alert to emerging forms of fraud and abuse, and a key aspect of its compliance and anti-fraud strategy was the use of analytics technology to predict which claims were more likely to be fraudulent. “It will allow the department to target higher risk cases and to do so faster.”