Oireachtas hears of rise in reports of welfare fraud

THERE HAS been a seven-fold increase in the number of reports from members of the public about suspected social welfare fraud, TDs and Senators have been told.

Niamh O’Donoghue, director general of the Department of Social and Family Affairs, said yesterday that there had been a “major increase” in reports of suspected fraudulent activity from the public. She also give figures showing the low number of fathers made liable for maintenance for their children by single mothers.

“At the end of May 2009, 2,136 reports were received in control division in Carrick-on-Shannon compared to the end of May 2008, when 299 reports were received, which is a 714 per cent increase.

“This figure does not include reports which were made to other areas or offices around the country.”

Ms O’Donoghue said however that after investigation, a number, had not led to any savings as in many instances, the individuals reported had been correctly benefiting from exemptions and disregards.

It was “very difficult” to put a figure on the true level of fraud, but using fraud and error surveys, in which inspectors reviewed a random sample of claims to assess how much fraud was taking place, levels appeared to be “very low”.

“It is less than 1 per cent of expenditure,” Ms O’Donoghue said, “but obviously that varies across schemes”. There was very little fraud in pension payments and more in other schemes, she added.

The department’s budget for this year is €21.3 billion.

Asked about fraud in Border areas, where it emerged recently that residents of Northern Ireland were making claims for the job-seekers’ allowance in this State, director of regions with the department Eoin O’Broin said a new procedure had been introduced.

“An unnotified home visit is made in each and every case where a person applies for the jobseekers’ allowance and a very detailed questionnaire is carried out aimed at confirming residence.”

Róisín Shortall TD asked about single parents being pursued to pay maintenance towards their children, where they were not in a relationship with the resident parent.

Ms O’Donoghue said every claim for the one-parent family payment was passed to to the maintenance recovery unit. In 2008, it dealt with 16,300 cases. In 14 per cent of cases, the “liable relative” could not be traced. In 23 per cent, the liable relative was on social welfare and so deemed unable to contribute. In 13 per cent, the liable relative was “unknown or there was a particular situation which prevented contact”. In 36 per cent of cases, the other parent’s income was below the €18,000 threshold for being liable for maintenance.

“In 13.5 per cent of cases a determination order was issued in relation to maintenance,” she said.