Response to interpellation 2022/23:287 on the Social Insurance Agency's handling of incorrect payments
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
1 M actively works to counter incorrect payments and benefit fraud that threaten the welfare system 1. The government takes action by establishing the Payment Authority and conducting a national census 1 2. M wants to strengthen secrecy and register legislation for better cooperation between authorities and municipalities to stop crime 2 3. M argues that the previous Social Democratic government did not work particularly actively on these issues 3. M wants to ensure that electricity support only goes to consumers through manual reviews and clarifications 2 3. M wants to continue providing authorities with tools to counter benefit fraud 3. M believes it should be easy to do the right thing and that the authority itself should do the right thing with clear control functions 4. M argues that citizens need to update their information continuously 4. M wants to work more effectively and clearly with issues regarding benefit fraud and organized crime, but emphasizes the need for the authority itself to do the right thing from the start 4.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Statsrådet Anna Tenje (M)
Madam Speaker! Isak From has asked me about the government and I intend to take some general initiatives to ensure that incorrect electricity support payments are repaid. Isak From has also asked me how the government intends to ensure the government's governance of its agencies so that the recurring inaccuracies that have now emerged regarding payments are not repeated.
The government is actively working to counter incorrect payments and subsidy fraud that threaten our welfare systems. This also applies to payments of electricity support to households. This is clearly evident from the mandates to take preparatory measures before the payment of electricity support that the government gave both Försäkringskassan and Affärsverket svenska kraftnät in November 2022 and in January 2023 respectively. Försäkringskassan has, in the preparatory work, collaborated with relevant authorities and actors in order to counter incorrect payments.
Madam Speaker! Every year, an estimated 18 billion kronor are paid out incorrectly, of which half are suspected to be different types of benefit crimes. It is unreasonable, and therefore this government is taking decisive action against benefit crimes and incorrect payments. Stopping the incorrect use of welfare and benefit crimes is highly prioritized in the Tidö Agreement, among other things through the establishment of the Payment Authority, which shall, among other things, prevent, deter, and detect incorrect payments.
That incorrectly paid compensation is repaid is important for the trust in and the legitimacy of the tax-funded welfare. Against this background, the government has taken measures to ensure that incorrectly paid electricity support is repaid.
From the government's regulations on electricity support to households, it follows that a recipient of electricity support may become liable for repayment to Försäkringskassan if the support has been determined incorrectly or with an excessively high amount. Försäkringskassan will also cooperate with Skatteverket in connection with the electricity support to companies beginning to be paid out in order to minimize the risk of compensation being paid out twice.
I want to emphasize that I am confident in the knowledge that Försäkringskassan's general control work generates good results. The trend of recent years with a generally increased positive result regarding the number of controls, detected incorrect payments, police reports, and recoveries persists even for 2022.
The number of police reports that the authority makes has increased by 38 percent since 2021, and approximately 8,150 police reports were made during 2022. During 2022, 29,500 control investigations were also conducted. In Försäkringskassan's annual report for 2022, it can be read that they paid out 251.5 billion kronor during the year. This makes the authority's work to counteract, detect, and rectify incorrect payments very significant.
The Government has taken several measures to avoid incorrect payments being made. For example, the Government is working to create conditions so that authorities can share information more effectively and thereby be able to prevent incorrect payments.
I want to clarify that it is important for me and the government that our common welfare goes to those who are entitled to compensation, not to anyone else.
Isak From (S)
Madam Speaker! Thank you, Minister, for the answer! Let me begin by congratulating Anna Tenje and Växjö on the SM-gold yesterday. I hope she has time to celebrate properly. It was innovative to build a Finnish wall into Växjö's goal. The sons of the region from Skellefteå did not quite manage it. Next time perhaps it will be possible – we shall see.
Madam Speaker! The starting point for my interpellation is the government's management of the electricity subsidies. In various ways, there have been four different forms of electricity subsidies jumping around. There were very clear promises during the election campaign that an electricity subsidy would be in place and paid out on November 1.
It is a mishmash of broken promises that has been supplemented with new uncertainties. It is still the case that the government has divided the country. It has been clear that the companies in northern Sweden shall not receive any electricity support. Regarding those companies in southern Sweden that have now received electricity support in a way that they should not have been able to get but have nevertheless received—via the money that was intended for private individuals and which has been handled by the minister's agency Försäkringskassan—there is also some uncertainty surrounding that.
The government has commented that the support does not need to be repaid. On the other hand, the Swedish Tax Agency has come out and emphasized that the support shall be taxed, which is welcome. Add to that the fact that it has been clarified in the review that many of the companies that have received electricity support, which should have gone to private individuals, can be agricultural companies. These are, as is known, under the EU's agricultural policy and are particularly affected by the state aid rules that apply to agriculture.
At the same time, Försäkringskassan states that they have been well aware that the support that has been and would be paid out to private individuals could also have been paid out to business activities because they have the same electricity meters.
We know that the whole thing was a rush job. Despite the clear promises that the right-wing government has given, significant uncertainty still prevails, primarily from the companies.
Just as Anna Tenje explained in her response, Försäkringskassan carries out a very large number of payments. Of those carried out in 2021, Försäkringskassan itself assessed that 130,000 were incorrect and that the agency paid out 1.6 billion kronor too much. Försäkringskassan has also reported that 20 percent of these incorrect payments are due to the agency itself having made mistakes and that this is known.
Despite that, the authority files a police report against individuals who have been paid incorrect insurance benefits or sickness benefits. I am saying nothing about that. However, it sends somewhat different signals about the existence of different regulatory frameworks and about what should be counted as a criminal act and what should not be counted as such. I think the Minister here can clarify what should be a criminal act.
Statsrådet Anna Tenje (M)
Madam Speaker! I am extremely pleased that the interpellator Isak From shares both my interest in combating incorrect payments and, above all, my great interest in hockey. Yesterday was truly a day of joy, and I have promised – not at a weak moment but in an expression of joy – that I will treat the government to Lakerstårta at the government meeting on Thursday.
Madam Speaker! Counteracting incorrect payments is something that the government cares deeply about. We see it as something that is undeniably very important to work on. It is important that the Swedish people can feel confidence in our authorities and that grant money is paid out to the right people.
The government, as stated, takes the issue very seriously and will continue to work actively to counter fraud and incorrect payments. In the Tidö Agreement, it is clearly stipulated that we shall, among other things, work with a payment authority but also with a national census.
We will strengthen the secrecy legislation in such a way that it allows different authorities to cooperate to convict organized crime and avoid incorrect payments. But we are also working to ensure that companies that received a share of the electricity support in the first round do not receive it in the second round, as the interpellor is pointing out. Since the compensation levels for the two electricity supports in the first round are at the same level, no clawbacks will be made. But it is undeniably very important that double payment is not issued.
The Government is working to ensure that the authorities receive better conditions to avoid errors in the future, among other things through greater opportunities for information exchange and more cooperation between the authorities.
In connection with this, we are reviewing the possibility of rectifying the problem before the payments of the electricity support are made across the entire country without delaying the payment for too long. The Government is therefore cooperating with the authorities to ensure that their work is carried out as efficiently as is possible. The electricity support for the entire country also contains a cap on electricity consumption, which further minimizes the risk of it going to companies.
The government safeguards our common resources. I have confidence that Försäkringskassan and our other agencies will continue the work of countering incorrect payments and benefit fraud, and that the government will work to find more effective tools so that the agencies can carry out the whole.
Isak From (S)
Madam Speaker! This has been an issue that has been debated quite actively in the media and on social media. I was contacted by a citizen in Western Sweden who wanted to pay back his electricity support. He was informed that it was not possible. He has, however, been reassured that he will be taxed for the money.
Another citizen, in Central Sweden, contacted us to describe their frustration. When they had been paid too much parental leave benefit, they were reported to the police because they, as an individual, had not discovered that it was too much.
At the same time, it has been described in various instances now that the same measures will not be implemented in these parts. It is clear that there will be a certain frustration for individuals who are affected by such a handling.
The Minister mentions the payment authority which is hopefully going to start on 1 January 2024. That work started through an investigation by the Social Democratic-led government because we saw the extensive fraud. Not least, it concerns gang criminals starting companies, having black money that is put into the company and then letting individuals withdraw and create parental leave and other [benefits]. It is of the utmost importance that this authority is established.
It is noteworthy that the right-wing government, with the decision to locate the agency in Hammarby sjöstad, abandoned the localization principle presented to the Riksdag in the proposition A coherent policy for Sweden's rural areas, where the main direction moving forward was that new agencies should be placed outside Stockholm. It would have been a fine trophy for the minister to bring home to Småland to locate the agency there?
A clear message is therefore that the upcoming agencies and the placement of agencies can be of very great use out in the country. There are more localization sites than Hammarby sjöstad.
I want to particularly emphasize the importance of the continued handling of the four electricity subsidies that are still not fully investigated because some of the payments that were made in the first rounds have turned out to be incorrect. Now a new payment round is coming, and it is of the utmost importance that the Minister and Försäkringskassan have taken relevant measures so that new errors are avoided.
Statsrådet Anna Tenje (M)
Madam Speaker! Yes, one gets a bit worked up when people from Småland take the floor. But what serves people from Småland best is that the taxpayers' money is used as effectively as possible and that the taxpayers' money goes to those who are entitled to it - not to those who commit grant fraud.
In this case, I think what is important is that the authority becomes efficient and achieves its purpose. We shall pursue every tax crown that otherwise risks ending up in the wallets of those who commit grant fraud. But certainly, it would have been nice to have one more authority in Växjö.
Madam Speaker! The electricity support for the entire country will now be paid out at the end of May. The Government has a close cooperation with the relevant authorities, and measures will be taken to ensure that companies do not receive this support.
The first support was directed at areas 3 and 4 and was then provided to consumers, companies, and municipalities. Electricity support number 2 does not do so in the same way. The Government will also make a clarification in the regulation concerning electricity support 2 to clarify that only consumers are entitled to the support. In cases where there is doubt whether the electricity was used by a consumer or by a business operator, Försäkringskassan will conduct a manual review to ensure that support is only granted for electricity consumed for consumption purposes.
Madam Speaker! I think it is extremely positive that we are discussing the issue of incorrect payments regarding our subsidy systems. Errors and fraud regarding subsidies damage the legitimacy of our collective welfare systems and cost an enormous amount of money - money that could be used in a significantly better way than laying the foundation for organized crime, which is actually the truth today.
I am pleased that the Social Democrats are active in this issue, but I still cannot state that the previous Social Democratic government worked particularly actively with the issue. We can now state that this government has given clear assignments in the regulatory letters to the crime prevention authorities but also to other authorities.
We are now working on a confidentiality legislation that is intended to enable cooperation in order to convict organized crime and, above all, also to prevent and stop payments from being made at all.
We are looking at a register legislation that also serves the same purpose and makes the broad cooperation between authorities so much better so that they can also share information with each other. There, it is rather a rule that one may share information and an exception that one does not – not like in the Social Democratic era, when it was precisely the opposite.
I also want to call for broad cooperation not only between state agencies but also between agencies and municipalities. In the municipalities, there is also a very large amount of money that risks ending up in completely the wrong pockets. Here we need to take a broad approach to put a stop to every tax krona that would otherwise risk ending up in the criminals' pockets.
We have also started the work with Skatteverket's census assignment. This will also be an immensely important piece of the puzzle, and it is also something that the previous government was completely unable to get started.
All these five things combined are such things that one chose not to do in the Social Democratic government but which will now serve our authorities well. Above all, they will also serve the taxpayers' money well.
From the government's side, we will continue to act to provide the authorities with tools to counter subsidy fraud and incorrect payments. But I am pleased that the Social Democrats now also consider this to be extremely important.
Isak From (S)
Madam Speaker! I can guarantee the Minister for Pensions and Social Insurance that we Social Democrats will stand on the side of those - Tommy, Birgitta and others - who utilize the insurance money and need to be on sick leave. Their rights shall be enabled, and they shall not be unnecessarily distrusted. It is, after all, the basis of the social insurance system that those who need compensation from the system shall also receive it.
It will most likely be the case that the government's handling of the various electricity subsidies will be scrutinized, both by the KU and the Swedish National Audit Office and probably also by the EU Commission, especially regarding the fact that they have mixed up the parts that perhaps primarily concern the agricultural companies with the support that goes to consumers. The agricultural companies are subject to a specific regulatory framework.
Agricultural enterprises in southern Sweden have now been able to receive electricity support, while agricultural enterprises in northern Sweden will not be able to receive it. The basis of the common agricultural policy is that the parts that are to be included must be jointly approved. I assume that several different actors will handle this.
It is the same thing regarding the corporate subsidies. Here it is clearly signaled that certain parts of the country will receive electricity support while others will not. It will also most likely be scrutinized.
But we are in complete agreement that we need to work together to clarify that the social insurance system shall be robust and legally secure and that it shall not be for any gang criminals. And then a robust authority is needed that does not itself make the amount of mistakes that have been made previously.
Statsrådet Anna Tenje (M)
Madam Speaker! I want to begin by saying that I share the interpellator's opinion that it should be easy to do the right thing, but also that the authority itself must do the right thing and that there should be clear control functions even for that part.
The most common reason for making mistakes is that incorrect information has been provided and remains in the system. Citizens often assume that our authorities have certain pieces of information that they actually do not have. One is obliged to update the information quite continuously. If there has been a change in rent or, for that matter, in salary, it does not automatically reach our authorities in the way I would have wished. It would have simplified things for employees and, above all, for those citizens who receive various benefits.
Good, but it can be better. We need to work much more efficiently and clearly with these issues when it comes to grant fraud and organized crime. But we also need to get better at doing things right from the beginning ourselves.
I would like to thank you for the debate, and I note that there is a broad interest in the chamber to address the problems with incorrect payments. This is an extremely important issue. I look forward to discussing it both inside and outside the chamber moving forward.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.