Social welfare spending rose sharply between 2007 and 2011 – from €15.5 billion to €20.97 billion – driven higher by the impact of the economic downturn as unemployment soared. Since then, the rapid pace of economic recovery and the sharp drop in unemployment have helped to reverse that trend.
So too have the savings made by the Department of Social Protection, through improved detection of welfare fraud and a reduction in the overpayment of benefits; this followed a review last year of some one million welfare claims, and the recovery of €83 million from some recipients. In 2014, the department achieved overall savings of €505 million by adopting a more aggressive approach in tackling fraud, in checking and challenging social welfare claims.
The department was helped – albeit marginally, it would seem – by the public in their reporting of alleged benefit fraud. However, too few of their tip-offs (25,000 in 2013) resulted in payments being stopped, as too many of these allegations either contained insufficient or incorrect information. But the efforts of a new investigations unit within the department made up of 20 gardaí has made a difference in tackling serious abuses of the welfare system, including identity fraud. And last year the unit's efforts achieved savings of €68 million.
As Minister for Social Protection, Joan Burton, has made clear, the Government’s commitment is both to maintaining core welfare rates, while adopting zero tolerance to welfare fraud. The latter stance, which is long overdue, involves active investigation of likely fraud, using the latest technology (including facial recognition software) to identify suspect welfare claimants. Welfare fraud is theft. It is now being treated as a serious crime, and can no longer be regarded as a minor transgression. The benefit of this new tougher approach by the State will not just be evident in the increased detection and prosecution of wrongdoers. It should also serve as a deterrent to others, and hopefully ensure that fewer in future are tempted by welfare crime. It will also help ensure that the most deserving receive adequate social welfare support.