GOVERNMENT MEASURES aimed at saving money on welfare fraud last year yielded almost €60 million less than expected, new figures show.
In a statement yesterday, Minister for Social and Family Affairs Mary Hanafin said that tough new fraud measures resulted in savings of almost €476 million during 2008.
However, the Government had forecast savings of €511 million at the beginning of last year. This figure was later revised upwards to €535 million last July after the Minister announced new anti-fraud measures. These included a stipulation that people signing on would have to collect their weekly benefits at a post office instead of having them paid automatically to their bank account.
Ms Hanafin acknowledged that less money was saved than anticipated because fraud inspectors were diverted to assist in processing and means-testing large numbers of unemployment-benefit applications.
She said these inspectors will be able to revert back to anti-fraud measures this year following the recruitment of new welfare staff in recent months.
Despite the shortfall in savings, the Minister said anti-fraud measures announced last July had resulted in savings of €25 million in targeted programmes.
The biggest overall savings last year were on one-parent family payments including widows (€142 million), followed by unemployment payments (€100 million) and illness payments (€72 million).
During the course of this year, Ms Hanafin said the department hopes to yield savings of €511 million through anti-fraud measures, along with a further €25 million through “intensified control activities”.
The Minister said that, given the enormous pressures on public finances, she will continue to ensure that the €19.6 billion funding is targeted at those entitled to benefits. “We seek to recover any overpayments from customers, as this funding is required to continue paying for other social welfare services. In cases of serious fraud, the department will use all legal avenues open to it to recover the money defrauded and seek redress.”
She also said there was a 70 per cent increase in the number of cases of possible fraud reported to the department by members of the public.
Ms Hanafin said each and every case reported to the department’s central control unit is investigated, and that all reports are dealt with in a confidential manner.
- The Department of Social and Family Affairs central control unit is contactable by e-mail at central.control@welfare.ie by phone at 01-7043000 or by post at Central Control Division, Shannon Lodge, Carrick-on-Shannon, Co Leitrim.
