Welfare fraud crackdown raises €238 million

A total of €238 million was saved in the first six months of this year through a crackdown on welfare fraud, it was revealed …

A total of €238 million was saved in the first six months of this year through a crackdown on welfare fraud, it was revealed today.

The biggest amount - €80 million - was recouped by reviewing 200,000 claims for one-parent family payments, while an examination of unemployment payments saved €55 million and a further €37 million came back from illness payments.

Some 1,615 employers underwent PRSI inspections to check their compliance, and 87 per cent were found to be fully compliant.

The Minister for Social and Family Affairs, Mary Hanafin, said the focus of the 50 schemes administered through her Department was to ensure the right money goes to the right person for the time they need support.

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She added: “We have to ensure that if there are overpayments that this money is recouped, and if there is a deliberate attempt to defraud, that those people will be dealt with through the courts.”

The Department pays benefits and entitlements to an estimated one million people each week.

Ms Hanafin said that each recipient has a legal obligation to inform the Department if their circumstances change, such as if they get a job, marry or begin earning over the eligibility limit.

The Minister said she hopes to recoup €525 million from fraud controls during 2008.

More than 600 staff at local, regional and national level are engaged on a full or part-time basis on work related to the control of fraud and abuse of the social welfare system.

A total of 205 cases were forwarded to the Chief State Solicitors Office to begin prosecution proceedings.

Of these, 134 cases were finalised in court, one was imprisoned, three received suspended sentences, 81 were fined, two received community service and 19 received the Probation Act.

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