Welfare fraud crackdown saves €206 million

A crackdown on social welfare cheats has saved the State €206 million in the first half of this year, Minister for Social Affairs Séamus Brennan said today.

That figure was an increase of nearly €30 million on the same period last year.

Social welfare payments will total €12 billion in 2005. This total adds up to a third of all monies received by the Exchequer each year.

Almost 159,000 of the country's 970,000 social welfare recipients had their claims reviewed since the start of the year.

Mr Brennan said inspectors investigated a number of ways in which cheats obtain payments fraudulently, including the making of false declarations or concealing information on status to receive overpayments.

Situations where overpayments arise include cases where claimants fail to disclose change in marital status, failure to disclose full means or increases in means and failure to disclose the employment or residential status of their spouse, partner or dependents.

As a result of these investigations, the State saved €66 million in unemployment benefits, €52 million in one-parent family payments and €36 million in illness payments. Nearly €10 million was saved by preventing child benefit fraud and €7.5 million on old age pensions.

"It is important that my Department's resources are targeted at those most in need - we must reach the right people, with the right supports and at the right time," Mr Brennan said.

The Minister said he would take "whatever steps are necessary" to prevent fraud in the future.

A total of 231 cases were referred to the Chief State Solicitor's office. Of those, 168 cases ended up in court, with three people being jailed and another ten receiving suspended sentences.

A further 84 people were fined, three were given community service, and 58 received the Probation Act. Ten were bound to the peace.