Increase in social welfare fraud court cases last year

The number of cases of social welfare fraud which resulted in court proceedings increased by almost three-quarters last year, the annual report from the Department of Social and Family Affairs shows.

Published yesterday, the report says that as a result of "a new focused approach to the criminal prosecution of alleged offenders, a total of 355 cases [up 73 per cent] were forwarded to the Chief State Solicitor's Office for the initiation of court proceedings".

Some 210 criminal cases were finalised in the courts. Among the results of these cases were 109 individuals fined, 27 given the probation act and 17 given a suspended sentence.

Gross savings from overall efforts to control identity fraud, debt default and other abuses were €295.9 million last year - an increase of 8 per cent on 2002.

Speaking at the publication, the Minister for Social and Family Affairs, Ms Coughlan, said the budget for her Department last year reached an "all-time high".

"At over €10.4 billion the Department's spend in 2003 was more than €4.5 billion higher than in 1997, an increase of nearly 80 per cent.

"This year the Department's expenditure will reach €11.3 billion."

Some 970,000 weekly social welfare payments are made, benefiting about 1.5 million people, she says in her foreword to the report.

"The strong economic performance of recent years has enabled us to make significant headway in promoting a caring society and supporting those who depend on social welfare services," said the Minister.

Despite much-criticised cuts in the Rent Allowance scheme announced in last year's Estimates, supplementary welfare payments are expected to increase in cost by 21.2 per cent, to €5.8 million.

The most expensive payment last year was Child Benefit, which cost the Department almost €1.5 billion. It expects to pay out €1.6 billion in Child Benefit payments this year, an increase of 13.9 per cent. This is despite cutbacks in eligibility to the benefit. This particularly affects asylum-seekers who are no longer entitled to it. It is worth about €130 a month. Asylum-seekers now get just over €9 a week per child under the Direct Provision scheme.

Payments for the Old Age (Contributory) Pension totalled €870 million last year and are projected this year to come to €947 million, an increase of nine per cent.

A number of payments are projected to cost less overall this year, including the Orphan's Allowance - projected to fall 24 per cent, and Employment Services payments which are expected to fall by 17 per cent.

The annual report is the first under the Department's "Promoting a Caring Society" programme which covers the period 2003 to 2005.