Revenue shortfall will limit welfare benefit rises, warns Hanafin

MINISTER FOR Social Affairs Mary Hanafin has signalled that "targeted" increases in certain welfare payments may only be possible next year due to a major shortfall in Government revenue.

In an interview with The Irish Times, Ms Hanafin said rapid growth in numbers signing on to the Live Register, as well as shortfalls in tax revenue, meant there would be limited resources to fund welfare increases.

"It's putting pressure on everything," she said. "Before we do anything, the cost of maintaining payments next year will cost €18 billion. That's without any budget package.

"In recent years the emphasis has been on increasing the basic rates quite significantly. The question I've asked - I don't know yet whether this will be the case - is that this year we might have to be more focused and more targeted on some of the rates."

Ms Hanafin said cost-saving measures - targeting fraud and cutting down on advertising and consultancy work - were designed to save €0.5 billion this year.

She said there were no plans to cut any welfare rates, such as the "savage 16" cuts to various benefits four years ago.

"We've made sure there haven't been cuts to schemes so far and I don't envisage there being any cuts to schemes," Ms Hanafin said.

"We'll be very active to ensure that we make savings in areas such as administration and consultancy work, all that kind of stuff.

"Our additional control and fraud measures are already making savings. For example, getting people to collect money at the post office is, apparently, a successful control measure," she said.

Latest figures show almost €238 million has been saved through anti-fraud measures in the first six months of this year. However, this is behind the target of saving €525 million through anti-fraud measures over the course of the full year.

A control measure introduced in recent weeks means social welfare recipients must collect their benefits instead of having them paid into their bank accounts electronically. This is aimed at creating further savings.

"We must ensure the right money goes to the right person for the time that they need our support. However, 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," Ms Hanafin said.

In the first six months of this year, 205 cases were forwarded to the Chief State Solicitor's Office for the initiation of prosecution proceedings. Of these, 134 cases were finalised in court, one person 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.

The Minister added that people must ensure they do not leave themselves open to proceedings being taken against them by knowingly continuing to get a benefit that they are no longer entitled to.