One Family Responds to Media Reports of Social Welfare Fraud and Notion of the ‘Undeserving Lone Parent’

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Press Release

One Family Responds to Media Reports

of Social Welfare Fraud and

Notion of the ‘Undeserving Lone Parent’

(Dublin, Wednesday 9 October 2013) One Family, Ireland’s leading organisation for one-parent families, responds to recent reports of social welfare fraud and the targeting of claimants of one-parent family benefits by Department of Social Protection investigators.

Karen Kiernan, CEO of One Family, states: “We find it abhorrent that there are some two-parent families masquerading as lone parents in order to receive more social welfare than they are entitled to. Whilst the social welfare system needs an overhaul to ensure that resources are put most where they are needed, i.e. with poor children in poor families, fraud is not the answer as it hurts lone parents and their children, and others reliant on state support.”

Stuart Duffin, One Family’s Director of Policy, comments:  “The dismantling and restructuring of social protection programmes have impacted disproportionately on women, especially lone parents, and shifted public discourse and images to welfare as fraud, thereby linking poverty, welfare and crime. Consequently, genuine lone parents can be demonised as welfare cheats. This almost criminalisation of poverty raises questions related to regulation, control, and the relationship between them, and it would behove the government to be extremely careful about their representation of fraud.”

There are three possible causes of irregular payments in the welfare system, fraud (dishonest intent), customer and/or third-party error and departmental error. An analysis by One Family which is available on www.onefamily.ie, has found that ‘Control Savings’– the internal performance indicator on the effectiveness of the Department of Social Protection’s (DSP) control measures, which has become a publicly quoted figure when the DSP wishes to report its efforts to reduce suspected fraud and error – is a poorly generated estimate. There is enough evidence to be concerned that the Department’s guidelines are not applied consistently across regions and that the predetermined multipliers used to generate estimated future savings do not accurately reflect return rates to welfare schemes.

According to an audit carried out by the Comptroller and Auditor General (C&AG), fraud and error in the Irish welfare system was estimated to be between 2.4% and 4.4% in 2010 (C&AG, 2011).  This would seem to place it in a comparable position with the UK (2.7%), New Zealand (2.7%) and Canada (3-5%).

Ms Kiernan concluded: “It is time the media and policy makers stop perpetuating notions of the deserving and undeserving poor. Social welfare and other state supports should be based on evidence of need and from a perspective of equality and fairness, not from who is politically expedient to target.”

Notes for Editors:

  • 1 in 4 families with children in Ireland is a one-parent family
  • Over half a million people live in one-parent families in Ireland
  • Almost 1 in 5 children (18.3%) live in a one-parent family (Census 2011)
  • There are over 215,000 one-parent families in Ireland today (25.8% of all families with children; Census 2011)
  • 87,586 of those are currently receiving the One-Parent Family Payment
  • Those living in lone parent households continue to experience the highest rates of deprivation with almost 56% of individuals from these households experiencing one or more forms of deprivation (EU-SILC 2011)
  • The document ‘One Family Analysis: DSP Control Savings Research’ is available to read and download here.

About One Family

One Family was founded in 1972 and is Ireland’s leading organisation for one-parent families offering support, information and services to all members of all one-parent families, to those experiencing an unplanned pregnancy and to those working with one-parent families. Children are at the centre of One Family’s work and the organisation helps all the adults in their lives, including mums, dads, grandparents, step-parents, new partners and other siblings, offering a holistic model of specialist family support services. These services include the lo-call askonefamily national helpline on 1890 622 212, counselling, and provision of training courses for parents and for professionals. One Family also promotes Family Day, an annual celebration of the diversity of families in Ireland today, with 10,000 people attending events this year on 19 May (www.familyday.ie). For further information, visit www.onefamily.ie.

Available for Interview

Karen Kiernan, CEO | t: 01 662 9212 or 086 850 9191

Stuart Duffin, Director of Policy & Programmes | t: 01 662 9212 or 087 062 2023

Further Information/Scheduling

Shirley Chance, Director of Communications | t: 01 662 9212 or 087 414 8511

Analysis of Department of Social Protection’s Reporting of Control Savings

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In April 2013, One Family carried out an analysis of the Department of Social Protection’s (DSP) Reporting of  ‘Control Savings’. Control Savings is the internal performance indicator on the effectiveness of the Department of Social Protection’s (DSP) control measures. We found that there is enough evidence to be concerned that the Department’s guidelines are not applied consistently across regions and that the predetermined multipliers used to generate estimated future savings do not accurately reflect return rates to welfare schemes.

Read or download the analysis here: One Family Analysis_DSP Control Savings Research_April 2013.

One Family’s findings:

  1. The multiplier used to calculate potential savings by the Department is 4 1/4 times higher than that used to calculate potential savings in Jobseekers Allowance.
  2. Consequently reported levels of OPFP fraud have been inflated.
  3. This highlights a significant error with the Department’s predetermined multipliers Office of the (Comptroller & Auditor General. (2011), op cit., pp 471-472).

One Family’s Reaction to Rental Assistance Reforms

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It has been confirmed by the Minister of State for Housing and Planning, Jan O’Sullivan TD, that the responsibility for the payment of rent allowance is to be handed over to local authorities as a pilot in seven areas around the country including Limerick Joint Authority (previously Limerick City and County Councils) and one in Dublin from January 2014.

One Family has reacted today to how the Department of Social Protection (DSP) and local authorities are placed to tackle the significant challenge of implementing the reforms to rental assistance and these changes transferring both the assessment and payments to local authorities.

Stuart Duffin, our Director of Policy & Programmes, commented:  “Working to manage the introduction of the rental assistance reforms will be the challenge, not the change in who pays. Their full impact is currently uncertain and depends on how households and the housing market react, locally as well as nationally. DSP and all local authorities have a crucial role to play in anticipating and addressing adverse consequences for claimants and the administration. Some challenges cannot perhaps be planned for: where the interaction of local authority funding constraints, the social housing stock, rental market conditions and the local economy produces extreme impacts. As issues emerge, the Department will need to be capable of a flexible response, well-coordinated with other sources of support for families.”

The Department is actively preparing for the implementation of these housing supports reforms and One Family calls on it to use available data to assess the impact of the reforms on current entitlements. We ask if these reforms will result in households receiving lower assistance, particularly in areas of high rent such as Dublin, and how will this impact on an already landlord-driven rental market?

Ten questions to be resolved are:

  1. What are the new local housing allowance restrictions and guidelines?
  2. Will this impact on all claimants immediately?
  3. Is there any additional help to support those who are hardest hit and is there a discretionary payments fund?
  4. Is this intended to help all  those who may  lose out  financially?
  5. What happens to existing  customers?
  6.  Are there changes planned  for direct payments of local rental allowance to  landlords?
  7. What is the financial impact  of this change?
  8.  How will local housing  allowances be  implemented in the future?
  9. Will direct payments to landlords be allowed in the social rented sector?
  10. How will housing costs be calculated ?

The Government must intend the reforms to improve the system. However, reforms could also lead to hardship or an increased risk of homelessness. How tenants and landlords will respond is highly uncertain at the moment and the Department must commission independent research to evaluate the impact of the reforms during and after implementation.

The Department needs to be actively working with all local authorities to identify the extent to which the reforms will increase the administrative burden on the authorities. It clearly has further ground to cover. Many people know very little about the changes, and the extent to which those affected have been informed varies according to where they live.

Private rented sector households know little or nothing about the changes that would affect them.

The Department has put in place transitional support through increased funding for discretionary housing payments. It needs to work with other departments and local authorities to monitor emerging issues and manage risks for both private and social tenants.

Ten Days for Ten Solutions

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With just ten days remaining until Budget 2014 on Tuesday 15 October, we are inviting everyone to support 10 Solutions. No Cuts. by taking one simple action on each of these ten days.

10 Solutions for Smarter Futures is our response to the harsh cuts aimed at lone parents in Budget 2012. These are changes that will benefit everyone, not just those on low incomes, as 10 Solutions for Smarter Futures is a series of ten no-nonsense, low or no-cost actions that Government can deliver to make life better for everyone.

How can you support the 10 Solutions campaign?

There are a number of things you can do.  These include:

1. Email your local TDs – use our pre-populated email facility. It takes less than two minutes on this link.
2. Join and share the ‘10 Solutions. No Cuts.’ event on Facebook. You can also change your profile pic to a 10 Solutions pic (available here).
3. Share on Twitter via @1FamilyIreland and #10Solutions.
4. Ask your colleagues and contacts, family and friends to support the campaign for 10 Solutions by taking the actions above too.

Read more about 10 Solutions here.