The State has made savings of €526m through the review of more than 630,000 social welfare claims, while investigators have also uncovered hundreds of cases of potential identity fraud. Details about the compliance and anti-fraud crackdown across last year’s social welfare schemes also show some €115m worth of welfare overpayments had also been made.

Social Welfare Investigations: A Multi-Pronged Approach

The Department of Social Protection currently operates a number of investigatory teams. Each team focuses on different aspects of social welfare compliance, ensuring that the system remains fair and efficient.

Employment Status Investigations

A dedicated team of 18 inspectors, known as the Employment Status Investigation Unit, examines the employment status of workers. The unit investigates whether workers are correctly classified as employed or self-employed based on their arrangements with employers. They receive information from various sources, including customers, workers, employers, and the Office of the Revenue Commissioners. Last year, this unit reviewed more than 330 new employers and interviewed over 1,000 individual workers.

Compliance Investigations

A team of social welfare inspectors, appointed under existing legislation, carries out investigations focusing on applications for means-tested income support schemes and Pay Related Social Insurance compliance, including employment classification. Last year, these inspectors conducted over 91,000 investigations across all schemes, resulting in savings of €66.1 million.

Fraud Investigations

A specialized unit tackles cases of suspected fraud, aided by seconded officers of An Garda Síochána assigned to support complex investigations. These dedicated inspectors carried out more than 16,200 investigations last year, reporting savings worth more than €62.9 million by year’s end.

A Multi-Layered Approach to Fraud Prevention

The Department of Social Protection employs a multi-layered approach to combat fraud and ensure the integrity of the social welfare system. These measures include regular checks and reviews of welfare applications to identify any discrepancies or inconsistencies.

Control Reviews

Control reviews are conducted across all welfare schemes, involving data matching with departmental and other records, seeking confirmation of ongoing eligibility from recipients, and, when deemed necessary, home visits by inspectors. This comprehensive approach helps identify potential fraudulent activity and ensures that payments are made accurately.

Emphasizing Customer Responsibility

The Department emphasizes the importance of customers reporting any changes in their circumstances, no matter how small. Even minor changes in income or family structure can affect the payment a recipient is entitled to. Failure to report such changes can lead to overpayments, which may have to be repaid.

The Impact of Investigations

The Department’s investigations have yielded significant savings for the State. In 2023, over 630,000 welfare claims were reviewed, resulting in savings of €526 million. This number includes over €115m in welfare overpayments identified. While overpayments were discovered, repayments of nearly €88m were made last year.

Potential Identity Fraud

Beyond savings, the investigations have revealed concerning trends. Last year, 325 cases of suspected identity fraud were referred for investigation. This highlights the importance of stringent security measures and continued vigilance in protecting the integrity of the social welfare system.

A Balanced Approach: Protecting Vulnerable Citizens

While fraud investigations are crucial to ensure the system's fairness and sustainability, the Department emphasizes the importance of providing support to vulnerable citizens. The goal is not to penalize individuals who may have made honest mistakes or are facing challenging circumstances. Instead, the focus is on ensuring that those who genuinely need assistance receive it, while preventing fraudulent activities that undermine the system.

The Future of Social Welfare Investigations

The Department of Social Protection remains committed to strengthening its efforts to combat fraud and ensure the efficient and equitable distribution of social welfare benefits. By utilizing a multi-pronged approach, including investigations, control reviews, and ongoing monitoring, the Department aims to safeguard the integrity of the social welfare system and ensure its sustainability in the years to come.