Tackling social welfare fraud saved €112m

Measures to tackle social welfare fraud brought savings of €111

Measures to tackle social welfare fraud brought savings of €111.63 million in the first three months of this year, according to the latest official figures. Regina Daly reports.

Total savings were up by more than €16.8 million on the previous quarter. Last year total anti-fraud savings amounted to €306.18 million, while in 2002 it was €282.7 million.

Announcing the first quarter savings yesterday, the Minister for Social and Family Affairs, Ms Coughlan, said she would continue to fight welfare fraud.

"Fraud and abuse represent a misuse of taxpayers money and I intend to ensure that the Department's efforts are directed at ensuring that social welfare funds go only to those who are entitled to them."

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She said the savings result from "normal reviews" carried out by her Department and "the work of Department staff engaged in investigative work". The Department figures show savings of €35 million in one parent family payments, €30 million in unemployment payments and over €15 million in illness payments over the period.

Approximately 85 per cent of the 1,462 employers who underwent PRSI inspections were found to be compliant. Almost 80,000 reviews of claims were carried out in total.

According to the Department, 137 cases were forwarded to the Chief State Solicitor's office for initiation of prosecutions.

Some 85 cases were finalised in court. Two resulted in prison sentences, seven in suspended sentences, 54 people were fined, three received community service orders and eight received the Probation Act.

The remaining penalties included cases that were bound to the peace or adjourned with liberty to re-enter.

A Department spokesperson said it was unclear if the increase in anti-fraud savings is due to more incidents or more detection of fraud.

"It's hard to know. It could be a combination of factors, and it could depend on staffing and resources in each region. In the past our computer system wouldn't have been as sophisticated."

The total social welfare expenditure for 2003 reached €10.5 billion.

More than 928,000 people received a weekly social welfare payment, over 534,000 families received child benefit during the year and more than 1.5 million people were recipients of free schemes including electricity, travel and phone rental.