The fight against social fraud is necessary to preserve resources for solidarity systems and to maintain social cohesion. However, it is not a quick fix solution to address all the financial needs of our welfare state. The High Council for the Financing of Social Protection emphasized this point in a report released on September 25th. Led by Dominique Libault, the council aims to objectively analyze the issue and propose solutions in a calm and precise manner. Despite the popular belief that households are the primary culprits of social fraud, the council aims to shift the discussion towards a more nuanced understanding of the problem. This expertise comes at a critical time, as Prime Minister Michel Barnier has expressed a commitment to combat practices that harm social security, echoing his predecessor Gabriel Attal’s stance.
The evaluation of social fraud presents a complex challenge, as perpetrators actively try to conceal their actions. Over the years, social protection organizations have worked to quantify this phenomenon more accurately. By combining various estimates, the High Council estimates that the loss for social security amounts to around 13 billion euros annually. However, this figure is considered a conservative estimate, as it does not encompass all social benefits or risks. Previous studies by the Court of Auditors and parliamentarians have yielded varying results, often higher than the current estimate. Comparisons with tax fraud, which ranges from 60 to 80 billion euros annually, also require caution due to methodological differences and uncertainties surrounding the figures.
The report highlighted that the network of Urssaf agencies is particularly impacted by social fraud, with approximately 6.9 billion euros in contributions eluded due to undeclared work. Caisse d’Allocations Familiales also faces significant losses, with an estimated 1.54 billion euros in improperly paid income support (RSA) and 1 billion euros in undue payments for the prime d’activité. The health insurance system is not spared either, with an estimated 1.71 billion euros in losses, including 340 million attributed to self-employed nurses. Addressing these issues is crucial to ensure the sustainability and effectiveness of social protection programs and to prevent further financial leakages in the system.
The High Council’s recommendations aim to strengthen controls and cooperation between various agencies to improve detection and prevention of social fraud. Enhancing data sharing, investing in technology, and increasing collaboration between public authorities and private entities are key strategies proposed in the report to mitigate the vulnerability of the system to fraudulent practices. These measures are essential to restore trust in the social protection system and ensure that resources are allocated efficiently for the benefit of those in need. By adopting a proactive and coordinated approach, authorities can better combat social fraud and protect the integrity of social security programs.
In conclusion, addressing social fraud requires a multi-faceted approach that goes beyond punitive measures towards a more preventive and collaborative strategy. The efforts to combat social fraud should be part of a broader initiative to strengthen the welfare state and ensure the sustainability of social protection programs. By adopting a balanced and evidence-based approach, policymakers can effectively tackle social fraud while maintaining social cohesion and solidarity. The insights provided by the High Council’s report offer a valuable foundation for further discussions and actions to address the challenges posed by social fraud and protect the integrity of social welfare systems.
