Social welfare fraud prosecutions expected to rise

A Government crackdown on social welfare fraud will result in a dramatic increase in the number of offenders prosecuted this …

A Government crackdown on social welfare fraud will result in a dramatic increase in the number of offenders prosecuted this year.

The Chief State Solicitor's office is expected to initiate prosecutions against 600 individuals this year, compared to 400 last year and 245 in 2002.

The upsurge follows the introduction of strict prosecution guidelines last year which stepped up database checking, employer inspections and medical reviews in the case of illness payments.

Most welfare fraud is related to false declarations, concealment of incomes and employers failing to comply with PRSI regulations.

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The crackdown has helped save €112 million in the first three months of this year, an increase of almost €20 million over the same period last year.

Inspections of employers have revealed that around 15 per cent were not complying with their PRSI obligations. The savings of €112 million also included one-parent family payments (€34 million), unemployment benefits (€15 million) and illness payments (€15 million).

Out of the 137 cases referred to the Chief State Solicitor's Office already this year, around 85 have ended up in court. Two individuals were served with prison sentences, 54 received fines, three received community service sentences and eight were released on probation.

The remaining cases were either adjourned or individuals were bound to the peace.

Meanwhile, plans are being put in place for a new central overpayments and debt management system within the Department of Social and Family Affairs.

The system is aimed at making the recovery of overpayments more effective.

The Minister for Social and Family Affairs, Ms Coughlan, said the inspections regime was aimed at preventing abuse of the system and ensuring existing resources were directed towards where they were needed most.

She said she was determined "to ensure that abuse of the system is prevented and is dealt with effectively when detected, and I will take whatever steps are necessary to achieve this".

Total social welfare expenditure last year reached €10.5 billion, with more than 928,000 people receiving a weekly social welfare payment.

There are 600 Department staff involved in the detection of fraud and abuse of the social welfare system.

Half of these are responsible for routine investigations and following up suspected fraud cases.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent