Fraud check on 150,000 child benefit payments
Friday July 03 2009
THE Government is to scrutinise more than 150,000 child benefit payments this year for possible fraud. The benefit is paid to 600,000 mothers and reports this week suggested it was likely to be taxed or subjected to means test from next year, saving up to €400m.
The Government wants to achieve significant savings on the €2.5bn paid in child benefit, nearly 5pc of State spending.
Some ministers favour taxing child benefit, as this would enable mothers to keep some level of payment. Others favour means testing as it would be fairer and produce greater savings. Social and Family Affairs Minister Mary Hanafin has admitted problems had been encountered with both methods.
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Another suggestion is that the Government might impose a cut of up to 20pc across the board for child benefit next year. Ms Hanafin revealed that in 2008, a total of 87,850 payments were reviewed and, as a result, 5,141 child benefit claims were terminated -- saving €47m for the Department.
"To date in 2009, a total of 88,217 reviews have been undertaken," Ms Hanafin told Deputy Joan Burton (Lab) in the Dail yesterday.
She added: "It is intended to complete in excess of 150,000 reviews in the full year."
The prevention of fraud and abuse of the social welfare system was an integral part of the day to day work of the Department, Ms Hanafin said.The news of the additional scrutiny of claims comes as it emerged thousands of foreign benefit claimants were investigated by between October 2007 and February last year.
In a trawl of suspected benefit fraudsters, 479 non-national cases were found to live permanently outside the State.
The investigation yielded savings of more than €4m for the Exchequer.
mlavery@herald.ie
- Michael Lavery
