Hanafin disputes welfare claim

Minister for Social and Family Affairs Mary Hanafin has defended her department's record in tackling welfare fraud after a RTÉ Prime Timeprogramme revealed fraud and mistakes relating to a range of benefits cost the Exchequer almost €2 billion annually.

The programme, which was broadcast last night, showed that fake PPS numbers could be easily obtained on the black market after just a few telephone calls.

Ms Hanafin this evening disputed a claim that welfare fraud fraud and mistakes relating to a range of benefits was costing the Exchequer almost €2 billion annually.

Ms Hanafin said: "There is no evidence whatsoever that fraud is costing the State €2 billion a year.

"The Department takes the issue of fraud very seriously. The level of fraud on most schemes is very low as evidenced by surveys carried out by the Department over the past number of years," she said.

However, Ms Hanafin acknowledged that within schemes, some categories of claimants can be a much higher risk than others and "when these are identified the Department moves to address the issue".

"This does not mean that all schemes or all groups of recipients are involved in fraud. The vast majority of people who seek a Social Welfare payment are doing so correctly and within their entitlement," she said.

She also outlined the measures her department had put in place to tackle welfare fraud.

She said some 620 department staff were involved in fraud detection, including dedicated Inspectors operating in special investigation unit.

Jobseekers were now only able collect their payments in person each week, and that photo ID was required when collecting payments.

Over 600,000 claims, across all schemes have been reviewed so far this year, including medical checks and certification for non-Irish nationals to prove continued entitlement to child benefit, she said.

Data matching both within the schemes operated in the department and with external agencies, she added.

Ms Hanafin today insisted her department had been “particularly vigilant” about the use of fake PPS numbers and had taken a number of individuals to court for defrauding the system.

However, she acknowledged a further clampdown on such activity was needed because of the large number of applications for PPS numbers in recent years.

Speaking on RTÉ Radio, Ms Hanafin said combating fraud is a “major priority for the department, and this year we will save over €500,000 alone by reviewing claims”.

She said the department was refusing a huge number of people by doing “proper means testing” at the initial claim stage, and ensuring people’s identity through “data matching”.

Ms Hanafin disputed the claim that the department was losing €2 billion, or 10 per cent of its budget, through fraud and waste, saying fraud estimates were based on the abuse of certain benefits which would not necessarily apply to other areas.

Fine Gael front bench spokesman Denis Naughten described the claim that up to €2 billion was being lost due to social welfare scams and errors as “staggering”.

Mr Naughten said he was shocked at revelations in the programme that PPS numbers were being rented out to non-nationals. “Every euro claimed fraudulently is one less euro for a family living on the breadline,” he said.

He said there needed to be “concerted and effective” campaign to review claims, identify fraud, and recover sums of money which have been overpaid.

“The problem is that the Department of Social and Family Affairs is already stretched to the limit in terms of staff numbers," he said. "The Minister has acknowledged that fraud control activity has fallen, because fraud controllers are busy processing claims rather than performing their core function.”

Mr Naughten said Fine Gael wanted to see the introduction of integrated public service card to help stamp out fraud.

Speaking in the Dáil today during Leaders’ Questions, Taoiseach Brian Cowen said 620 staff members were involved in fraud detection and a special investigation unit was in place.

Rejecting allegations of complacency, he said 600,000 claims across all schemes had been reviewed this year and inter-agency cross-Border checks had been established to help prevent fraud.