The Audit Office has identified extensive weaknesses in how the Ministry of Social Welfare administers and monitors social benefits, citing systemic gaps that have led to delays, overpayments and payments to individuals not entitled to assistance.
The findings, published on Tuesday, cover payments of the Guaranteed Minimum Income (GMI), Child Benefit, Low Pensioner Allowance and Single-Parent Family Allowance for 2022 and 2023, as well as procedures managed by the Social Welfare Services (SWS) and the Department for the Social Inclusion of Persons with Disabilities (DSIPD).
Ineffective controls and delayed interventions
Audit findings highlight ineffective control mechanisms and a lack of timely interventions. The report notes that the Social Intervention process, intended to help beneficiaries enter the workforce, was poorly applied. Many recipients received benefits without being registered as unemployed, with some adult dependents living abroad still receiving payments. One case recorded €62,981 in GMI payments from 2014 to 2023, despite the adult dependent never registering with the Public Employment Service.
Delays were also noted in disability certification. Over 1,180 former recipients of public assistance awaited referral to the DSIPD, while 780 cases remained pending assessment, with 629 ultimately deemed not disabled, indicating widespread erroneous payments.
Systemic gaps in approvals and eligibility checks
The report flagged failures in the pre-approval process for benefits, with some approvals lasting more than three years instead of the prescribed three months. Payments were made to individuals without valid residence permits, including a case of €231,907 issued to a non-EU national with expired permits.
Discrepancies were observed between reported incomes and actual expenditures, suggesting undeclared earnings. In one case, a single parent’s declared assets surged from €157,733 to €825,074 within a year without investigation by the Social Benefits Management Service (SBMS).
Lack of integrated systems and inter-agency coordination
The Audit Office emphasised that these issues are systemic. The absence of unified, interconnected IT systems limits effective oversight, leaving the SBMS unable to detect irregularities promptly. The lack of a central marriage registry hinders verification of family status, resulting in benefits being paid incorrectly to individuals claiming single-parent status.
Further, insufficient coordination with the Land Registry, financial institutions and immigration records prevents cross-checking of assets, bank accounts and residence information. This has allowed payments to continue even when recipients no longer met eligibility criteria.
The report concludes that the system requires comprehensive reform, including integrated IT infrastructure, mandatory cross-checks, improved inter-agency coordination and clear legislative frameworks to ensure social benefits serve their intended protective function rather than becoming a permanent substitute for employment.
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