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Dublin: 11 °C Monday 20 May, 2013

€645m saved through social welfare ‘control measures’

Joan Burton says 982,000 individual claims have been reviewed, including savings of €60m from the ‘special investigation unit’.

Image: Laura Hutton/Photocall Ireland

THE DEPARTMENT of Social Protection has reported savings of over €645 million following a comprehensive review of welfare payments and a renewed clampdown on fraudulent claims.

Joan Burton says the savings follow a review of 982,000 individual welfare claims for social welfare payments, and significantly exceeded the target of €540 million set this time last year.

Included in the savings are over €60 million saved in anti-fraud measures after investigations by the Department’s new Special Investigation Unit, which received almost 17,000 tip-offs last year.

Burton said over 30,000 fraud investigations and inquiries have been completed, with 174 cases referred to Gardaí for possible investigation under the Criminal Justice (Theft & Fraud Offences) Act.

The Department said in a statement that special projects “such as non-residency and multiple claiming … have been particularly successful”.

A breakdown of the overall €645m savings showed that €167 million of spending was cut under the one-parent family benefit, and €142 million from pensions.

€88 million was saved through a review of child benefit, and another €82 million was cut in jobseekers’ allowances and benefits.

Burton said the savings showed “our commitment to tackling fraud and abuse of the social welfare system across our broad range of schemes.”

The €645 million figure reflects the Department’s expectations as to how much it would have spent on benefits, over time, but for the new investigations. It is not an annual figure.

“A key priority for my Department is to ensure that fraudulent activity within the social welfare system is vigorously prevented and combated,” Burton said.

“Social welfare fraud undermines public confidence in the entire system as well as being unfair to other recipients of social welfare payments, taxpayers and businesses run on a legitimate basis.”

Read: 437 jobseekers had payments cut for refusing employment help

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Comments (100 Comments)

  • Bruce 16/02/12 #

    Only the tip of the iceberg. Assuming a 5% level of fraud then the annual level of fraud is in the region €1b. Undoubtedly, the abuse of lone parent, childrens allowance, disability benefit,the black economy etc there is easily €2b per annum to save. Time we as a people stopped condoning welfare fraud. It is this very ambivalence to welfare fraud that had you and me having to pay more taxes, charges etc.

    Reply
  • As TV3 showed on Monday night fraud is still rife in this system. I also blame lazy civil servants for not doing their job. I am a public sector worker, working in the area of Special Needs Education, and if I or my colleagues did not comply to the terms of our contracts we would be disciplined or/and have our contracts terminated. I know of someone who has cheated the system for 5 years of €24,000. So easy to do when some lazy civil servant never followed up on these payments. Something that was meant to be a once off payment to help this person get back in their feet is still happening 5 years later!!! No wonder our poor country is on it’s knees!

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  • Wouldn’t be Ms. Burtons biggest fan but this is great. I’m amazed at some of the ‘too little, too late’ and the usual bankers comments. it’s never too late to save a half billion on money going to people that don’t deserve it.

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  • “69% of overpayments in 2009 and 2010 were due to error”
    See ‘Tackling Welfare Fraud’ published by the Oireachtas Library & Research Service on October 13, 2011. It concluded that only 21.1% of over-payments in the social welfare system were due to fraud.
    But there is no percentage in training staff or improving systems. Shouting about fraud guarantees the Minister lots of publicity and deflects attention from the real problems.

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  • I know someone on the dole for 10 years, lives at home, etc. and has thousands saved up in the bank. Has no problem taking all of this welfare money and has no intention of working again. Why aren’t these people having their dole cut in half?

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    • Why haven’t you reported them?

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    • jrbmc 16/02/12 #

      Do you know this person well enough to make this statement ? Do they have a disablity maybe that you dont know about, or that they lead a really simple life that doesn’t involve going out every weekend or two holidays a year and that’s why they have thousands in the bank, sure what am I talking about of course you you know them

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    • Exactly, why haven’t you reported them. It is your responsibility to alert the Dept of Social Protection rather than whinge about it on a comments page like this. Either piss or get off the pot.

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  • Stable door – Horse bolted. Too little to late, its being going on for years but because the country was flush nobody bothered to do anything about it. We need proactive leaders not reactive.!!!

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  • Will they apply the same aptitude to arresting and charging the bankers who in essence should be charged with treason. Not one banker worldwide is serving time for this mess that the ordinary citizen is paying for!

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  • ahfukit 16/02/12 #

    Holy s##t, this is just another way of dividing society. If they turn everyone against each other, then it is a lot easier for them to do whatever they like with little or no fight. I think that they should deal with fraudulent claims, but if people think that things are gonna be any better after they report their neighbour. They are fooling themselves. As somebody commented already. These savings are tiny in comparison to what everybody is paying back for the lack of regulation and abundance of backhanders which were rife with the previous government. PEOPLE NEED TO STAND TOGETHER

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  • A sad state of affaires, a State reduced to eating its own off spring, the value of the money saved a weeks interest to greedy bankers. I am the first person to say hunt down and bring to justice anyone guilty of fraud but what is making me angry is that a whole section of society seems to be exempt of prosecution. A few desperate scamsters are caught cheating the State and those who have cheated us all of so much for so long will continue to go unpunished. Animal farm: the pigs really do rule!

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  • The Irish begrudger is alive and well. 645 million to little to late. I’m not her biggest fan but that’s a hell of a saving over a couple of years. Oh yeah I thought I saw a banker stealing a child’s ball the other day. And just to try and get some fact to earlier comments. All you have to do is use google to see plenty have been charged in Iceland and its going the same way here.

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    • The €645 million figure reflects the Department’s expectations as to how much it would have spent on benefits, over time, but for the new investigations. It is not an annual figure.

      Well done Joan for catching some welfare cheats and while its not a bad attention grabbing headline it turns out that its mainly based on speculation and assumption.

      Reply
  • Aarum 16/02/12 #

    Go on the fraud section!!! ;-D

    Also I agree lock up them banker f@@ks!!

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  • Peter 66.you want to report someone who is working and collecting a Pension..All the retired politicians are working in new jobs,and collecting huge pensions.Bertie himself.has two full time jobs,and take 3,000 a week from us each week.So before you report your friend for doing this,have a look around first

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  • jrbmc 16/02/12 #

    No what’s disgusting is that fact that a person who has worked all there life in this country and payed their tax get the same social welfare allowance that a person who just entered the country last week gets.

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  • japwj 16/02/12 #

    Please amend your inaccurate and widely misleading headline. The €645m figure is what the department might ‘possibly’ save if it did not carry out any inspections or assessments of claims. It is not a ‘saving. It is not real money. It is a figure calculated by the department. It does not refer to money spent or obtained. The ‘actual’ fraud last year was €26 million. This is the official figure from the Department. The total social welfare expenditure was around €20 billion. Thus, fraud accounts for 0.01% of total social welfare spending. But don’t let the facts get in the way of story eh?

    Reply
    • @japwj: Thanks for your comment. This is from the Department’s press statement:

      “These savings refer to future expenditure that would have been incurred but for this control work. Without this investigation the Social Welfare Bill would over time increase by this €645m.”

      The article reflects this (in the third-last paragraph) in stating that it is not an annual saving, but still that the Department says the spending WOULD have been incurred had the new measures not been undertaken.

      We’ve covered the issue with control savings elsewhere (including in this opinion piece by Michael Taft) so we’re fully aware of the hypothetical nature of the saving, but I disagree with your assertion that the headline is inaccurate or misleading, let alone ‘wildly’ so.

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    • japwj 16/02/12 #

      The headline says that €645 has been saved . The headline is, therefore, widely inaccurate. No such saving has been made.

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    • Nice to have some simple facts in the midst of all this hate-mongering, to bring us back to earth! Divide and conquer, it’s a time honored tactic of rulers isn’t it? Distracts us from the real source of our current problems and any hopes of making those fraudsters pay – bankers, politicians, etc. and to be fair all those who were happy to sit back and take what was offered no questions asked during our Celtic Tiger years. Hmm…

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    • There is no hate mongering or divide & conquer here, Margot. Welfare fraud is just as bad & unacceptable as what the bankers did.

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    • The first correct statement I’ve seen. People read a headline like this and automatically assume that people have defrauded the welfare system of €645 million, probably over the time Ms Burton has been Minister. It is inaccurate. The 645million is a guestimate of what Minister Burton hopes to save. But lets not forget that she is also including in this figure the amounts of savings she has done by slashing the social welfare bill itself. She stands and proclaims that the basic social welfare payment hasn’t been cut in the Budget and aren’t they fantastic that in this economic climate they have managed not to touch the basic payment. But the cuts she has introduced in the back door have had a worse affect than if they had cut the basic pay rate. Rent supplements cut so that people now have to move to less expensive accommodation (usually a hovel) or have their payment stopped. You wouldn’t get a house in my area for the rate she expects. Landlords are not reducing their rents. Single parents now allowed to earn nearly 20 less yet childcare costs are not being reduced. Exceptional needs payments slashed. Young jobseekers rates slashed. This is making up the bulk of the 645 million, not generating this amount by combating fraud. Look at the figures she gives for the tip offs. 30,000 tip offs yet only 174 going to court for fraud. Are you telling me these 174 managed to fraudulently claim 645 million?

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    • Oh yes there is divide and conqueur here, it’s a shame you can’t see it Declan Carroll. If you can’t see it, don’t blame those that can.

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    • Oh people dislike the comment for the truth, wow!!!

      Reply
  • japwj 16/02/12 #

    If every mistake and error was captured. If every fraudulent claim was rejected. If no department official ever made a mistake, if no applicant ever lied , the eventual savings, over a period of time would be around €640million.

    Compare this to the €7.4 billion in revenue the State loses every year as result of its generous tax breaks which are three times the EU average http://communityplatform.ie/uploads/campaign_document_final.pdf

    Reply
  • 645 million,and something like 3 or four hundred million last year.By these figures there should be nobody left on the dole.Would be truly great,if indeed they have saved that amount..I want to know what is the 645 million figure based on,is it the lifetime of a person on the dole,or a yearly basis.If they really have saved this amount,I congradulate them for it,because it shows they have done a great job.It will be great now that they have such experience to go after the real money trail.Start with the ones fiddling their expenses,and pensions.Next go after the devolopers who are all back in work,and claiming 200,000 from us each year.Now they have caught these people fiddling on the dole,go after the real scroungers.you proved to us all you have the experience.so do it.!!!Why do I suspect this is another smokescreen to whats coming.The days ahead will tell

    Reply
  • I would be punished more for stealing a mars bar than those bankers will get for their monumental crimes.
    Those bustards will never be poor.
    When will the government realise how much we would forgive them if they hung these bankers out to dry?

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  • I can’t stand welfare fraud and do think that it should be stamped out. However, to prioritise investigating welfare abuses by desperate people over punishing those who abused their positions in banks for years sends the complete wrong message.

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    • jrbmc 16/02/12 #

      Totally agree Adam

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    • Andrew 16/02/12 #

      I agree with the sentiment, but the idea that it “sends out the wrong message” depends entirely on your point of view. What we learn is the kind of message our government are trying to get out. They’ve done a great job of sending out the message (that is now well percieved) that this mess is entirely our own, that ‘dole scum’ , lazy teachers and nurses are all at the heart of it.

      I’m glad that measures have come in to stop people stealing dole when they are working or abroad. But even with those figures approaching a billion, they still look ridiculous when we compare to what we ‘owe’.

      In-fighting and scapegoating within the working class, pinching for pennies off the peasants while those really in power continue to steal billions and billions from under our noses.

      Reply
    • Exactly how could the Department of Social Welfare investigate frauds committed in the banking crisis?

      Government is supposed to be able to do more than one thing at time.

      Reply
  • “The €645 million figure reflects the Department’s expectations as to how much it would have spent on benefits, over time,”
    Over what period of time, not a year. This sounds a bit sensationalist to me. That could be €645million over 10 years. And the fack that these are low hanging fruit like double claiments, non residents, non single parent families. Imagine how indemic fraud actually is in our social welfare system. Disgusting.

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    • The “fraud” word really stirs up the spirits. While there are fraud steers, the indemic system inefficiencies of the social welfare system lead to more money loss than actual fraud carried out by people.

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    • And don’t forget that it’s about 10% of the figure of 645 million, that’s actually recovered from fraud. 90% is gained by cutting from the people that need it most.

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  • Has anyone noticed that the number of people who are {jobless and receiving social welfare right now}, is roughly the same as the number of economic migrants who came to this country since 2007, when the new EU countries joined the Schengen Area?
    Romania and Bulgaria will be joining the Schengen area in 2014, and I’m looking forward to seeing what affect that will have here.

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    • I am truly fascinated by your empirical hunch on this. I also noticed that the number of people claiming social welfare is roughly equal to the population of Co. Cork. Fascinating, truly fascinating.

      Reply
  • jrbmc 16/02/12 #

    It all has to start at the top! Why is it that everybody else had to take a pay cut and budget every month and suffer ? Why aren’t Governments, Ministers TDs etc…not Subjected to the same ? What control measures are in place there? None!

    Reply
  • What about the massive thieving that Burton and crew partake in daily!

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  • Appeasement of the Petit bourgeois. Butter them up for the next tax increase by showing ZERO TOLERANCE on dole fraud, the story being fed to the countries media this week, eliciting exactly the response expected from most of you above.

    Great, I snitched my neighbour in, delighted for him. 17,000 tip-offs to the State. Pure parochial bitterness. What next? Say even a billion saved? That’s liquid money that was being spent in your towns, more than can be said for the bills incurred from paying off rogue banking institutions. Do not underestimate how much social welfare payments contribute to what’s left of the services economy in all those recession blasted towns through the country. Where’s that possible billion going now? Is Mr tittle tattle going to get a reward for daubing in his neighbour?

    The people who snitched will be no better off materially or in the future. They might be distracted for a while, a short smug afterglow in seeing a woman’s single mother benefit (albeit claimed fraudulently) cut and that’s it. The money has gone straight into the great fire, the blaze of the this country’s mismanaged coffers.

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  • Any claim this government makes has to be taken with a grain or two of salt. I would say the money saved here is more to do with them streamlining their ridiculous processes and double payments rather than catching dole cheats. No doubt Ms Bruton will pander to the fear of the “welfare vulture” for political gain. And why not, people are stupid enough to buy into this governments propaganda.

    Reply
  • NO MORE PAYING OUT TO PEOPLE WEARING SNICKERS/TOOL BELTS/COVERED IN PAINT

    …..€645m saved through social welfare ‘control measures’

    Reply
  • jrbmc 16/02/12 #

    Yes I agree Emsy Wemsy but there is fraud at the top aswell and the sums are far higher so they would save more it they started there

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  • The propaganda from these people is unbelievable. These people must think that everybody has no memory. This must be the fourth or fifth time in the last eight years or so that these people keep saying that they saved around 650 Million. It becomes very suspicious when they keep saying almost the same figure.

    These people are more like Nazis and have convinced themselves that they are right at all times and it all comes back to using opinions to judge, which is ignoring peoples rights and will them leave people to starve. Raising Civil Servants to levels of authority to be judges has turned them into criminals.

    The people on social welfare need to protect themselves and force the department to give them a full list of their rights. If you have any problems you must go to the social welfare appeals office. If the Social Welfare Appeals Office does not work you must go to the courts to protect your rights. Do not let them judge you while financing the pretentious.

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  • I heard a rumour that there is a financial reward for reporting welfare fraud – is this true?

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  • Every time I hear this woman speak I feel as if am being punished. Has no one ever told her that she sounds absolutely ridiculous? Where did she get that voice from, a lucky packet?

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  • nope..

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  • Labour / fine gale= lying hypocrisy arrogance. And its only the first year. Only another 4 to go… By then we should be all cheats or if not alco’s.

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  • Glad to see so many can see so little.

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  • Hi I want to correct the my wording” people who are frauds on the social welfare” being dishonest and cheating the system” should have their payments docked and be made pay back what they have scrounge out of tax payers money” the likes of frauds are ruining it for real genuine people” so I don’t have any sympathy for cheats and scroungers” Rita Cahill

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  • Again, they hit on venerable People, what’s the next thing that this Government can do” oh I know starve the families like single parents and then hit on Disability people, this is what FG / LB party have always done in the past and into the present, they are not for the poor people, they have always being for the wealth, if you are not wealthy to them” it’s a bye bye, they want to fill their pockets with your money” that’s what this Government do Best and FF I would never trust them ever again” independent and Left Alliance would be my better choice at least they will protect the Vulnerable, There is a protest on sat outside the Dial at 2pm, I support and go to them all, so now is your best time to get out and voice yourself and don’t let this government get away with what they are trying to do in a peaceful Protest” one voice speaks for us all together as one” fist the cutback on Education Community and SNA for the Disability” and cuts on Health Service Community projects Rita Cahill

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    • Rita, welfare FRAUD is what is being hit here. Anyone with a correct entitlement is fine. Thieves and fraudsters are not “The Vunerable”. If anything, they are being hit more by fraud, as there is less money available for the legitimate recipients.

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    • Really P Wurple, anyone entittled is fine. Two friends of mine haven’t been able to get work for 18 months. When they tried to claim, they were continuously pushed around, one was even told to go abroad and find work. They still are not getting anything, and have paid thousands into the system, which has gone on the Banks instead, so how do you work out that those who are entittled will still receive??????????????

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    • @ Patrick – you work, you pay tax and prsi ie your stamps. You loose your job you sign on and you get paid because thats what your prsi payment is for! After 12 months yours stamps run out and you then get transferred onto assistance which is basically the same (there is a small financial difference).

      So if your mates were working then they were entitled to a social welfare payment. However if they were running their own business then they unfortunately and disgracefully are not entitled to a SW payment. I think they are trying to make an eejit out of you.

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    • Sorry Ann but no one is making an eejit. They have been left strapped, and that’s a fact!!!! I’m sorry if you can not accept this, but it happens to be the truth. In fact, the Irish Post in Britian recently ran an article on this, and how many Irish have been left stranded by the welfare system.
      And, believe it or not, the amount that said they were told a very similar tale, go aboard, its incredible!!!

      Cowan and crew worked on a theory that hundreds of thousands of Irish would leave to look for work in other countries, thus bringing down the dole bill.

      What alot of people do not realise is, this has already happened once before, in Thatcher’s Britian, and I was there to see it.

      So, please do not try and make it look like someone is making an eejit out of me, the only people being made look like an eejit, are the one listening to this govermant rubbish.

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    • P Wurple> Were u ever on the Social?

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    • P Wurple 17/02/12 #

      @thelasteka Yup, in 2002. I was offered the usual course they offer women, typing., refused it and took a job stacking shelves.

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    • Vulnerable ppl?? stealing tax payer money is that innocent??

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  • Looking at her picture above,she should take some of the money and get something done with her face.She looks like god made her for spite,I doubt the tide would even take her out.She probably looks in the mirror each day,hates what she sees,and then inflicts her hate on all of us..Anyway,god help her too.

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    • u may not like her, but it doesn’t give u right to insult people’s appearance… eventhough i don’t like the government, i appreciated wht they are doing with the SW fraudulent…

      Reply

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