Social welfare fraud reduced by €230m

Anti-fraud investigators reviewing unemployment and other social welfare payments have saved the Exchequer nearly €230 million…

Anti-fraud investigators reviewing unemployment and other social welfare payments have saved the Exchequer nearly €230 million in the first nine months of the year, according to the Department of Social and Family Affairs.

The saving in unemployment payments was greatest at €91 million, followed by one-parent family and illness payments at €48 million and €40 million respectively.

Welcoming the figures, the Minister for Social and Family Affairs, Ms Coughlan, said "in these straitened economic circumstances, and with competing calls for resources, it is essential that the budget of the Department, which is funded by the taxpayer, is targeted at those most in need.

"I take this responsibility seriously," she said, adding the Department would continue with the measures that had led to "these substantial savings".

READ MORE

Nearly a quarter of a million claim reviews were carried out and 273 cases were forwarded to the Chief State Solicitor's Office. Of 131 cases finalised in court, seven resulted in prison sentences, 64 fines and 10 community service orders. The remainder were either struck out or resulted in no penalty.

Of 5,249 employers who underwent PRSI inspections, almost 90 per cent were found to be compliant, the Department noted.

As for unemployment schemes, the figures show that savings were highest in the north-east at €12.8 million, followed by the south-east at €12.2 million, the south at €10.8 million and Dublin North at €10.4 million.

The figures are based on estimated benefits that would have been paid had a review, which resulted in a reduction on cessation of payments, not been conducted.

About 600 Department personnel are responsible for reviewing payments through spot checks, periodic reviews and cross-checks using the Revenue's database.

Total social welfare spending is expected to exceed €10.3 billion this year. In 2002, more than 935,000 people received a weekly social welfare payment, more than 500,000 families got child benefit and about 1.4 million people accessed free schemes for services such as electricity, travel and phone rental.

Joe Humphreys

Joe Humphreys

Joe Humphreys is an Assistant News Editor at The Irish Times and writer of the Unthinkable philosophy column