Child benefit payments to foreign nationals whose children are living outside the State should be reduced significantly, according to a report on social welfare fraud by an Oireachtas committee.
The report, published this afternoon, states that in light of the difference in living costs between Ireland and most other EU countries, the payment should be reduced accordingly.
Around 11,000 children who live abroad are in receipt of child benefit in this State, at a cost of around €20 million to the Exchequer.
It is one 14 cost-saving recommendations in a report by the Oireachtas Committee on Social and Family Affairs.
Overall, the committee members say much more can be done to save the State millions of euro in welfare fraud or over-payments. The proposal include:
* A crackdown on separated fathers who do not pay child maintenance for their children. This would include ensuring a father’s name is registered on a child’s birth certificate to help recovery of maintenance payments.
* A mandatory national ID card with biometric information for all citizens - similar to those other EU states - to help tackle identity fraud
* Implementing long-standing plans to reform the lone parents allowance which would allow a new parental allowance be paid to parents, regardless of the marital status of parents.
* More frequent monitoring of welfare schemes most susceptible to fraud, including the job seekers allowance and lone parent payments.
The report’s author Labour TD Roisin Shortall said the recommendations were urgently needed given the large increases in unemployment and pressure on the public finances.
“At a time when more and more people need to avail of social welfare, we must ensure that any money lost through fraud and scams is kept to the absolute minimum, so those who really need the help can avail of it,” Ms Shorthall said.
On the issue of reducing child benefit for children resident abroad, Ms Shortall said it was not “appropriate” that the payment was paid at the Irish level given the lower cost of living in many other EU countries.
“There is a huge difference in the cost of living between Ireland and other EU countries. We’re questioning the appropriateness of this. The Irish level of child benefit should be paid for children who are resident in Ireland...”
She accepted, however, that the proposal may be just aspirational given that the current arrangement is provided for under EU law. Last year a total of €476 million was saved through anti-fraud measures, almost €60 million behind its target of €535 million.
This year, the Department of Social and Family Affairs estimate it will save some €600 million. However, initial figures show it is already behind target.
Ms Shortall said the State could no longer turn afford to turn a blind eye to those who wilfully defraud our welfare system.
"We feel that implementation of the proposals in this report will mean less money is lost and therefore more will be available to those who really require it," she said.
