In 2010 the Danish Government and the association of Danish municipalities, Local Government Denmark, agreed on consolidating various municipal payment tasks to gain economics of scale. The tasks were transferred to a new public authority, Udbetaling Danmark (translates Payments Denmark) which went into operation 1st March 2013. After two years of operation, Udbetaling Danmark has now realized the savings of nearly DKK 300 million that were agreed upon.
Easier to apply for pension
As a part of the joint government eGOVERNMENT strategy 2011-2015, Udbetaling Danmark has made citizens’ interaction with the public sector simpler and smoother. As an example, the digital application process for state pension has been made easier as applicants no longer need to provide income information which the government already has. This makes it easier for citizens to apply for pension and also reduces the risk of errors in the payments.
A more systematic approach to controlling payments of social benefits
Since the establishment of Udbetaling Danmark, central government has transferred more tasks to Udbetaling Danmark, more specifically the tasks of the Danish Pension Agency which will now be handled by Udbetaling Danmark. Lately the Danish Government and Local Government Denmark have agreed upon transferring more municipal tasks to Udbetaling Danmark.
Simultaneously it has been decided that, in future, Udbetaling Danmark will play a significant role in strengthening the controlling of payments of social benefits. The Government and Local Government Denmark have agreed to establish a new data unit under the auspices of Udbetaling Danmark to be responsible for this task. The data unit will be in operation from 1st May 2015.
The data unit will make it possible for public authorities to identify and prioritise cases with the highest probability of payment errors and of fraud with social benefits. The prioritisation is made possible by applying data analysis tools to data which municipalities and Udbetaling Danmark already have access to, and by combining data in new ways. This will make public authorities less dependent on anonymous reports of possible fraud and will reduce undue suspicion of citizens.
The data unit will also support better knowledge-sharing and collaboration between authorities. Furthermore the data unit has an important task of collecting information about citizens' activities abroad with the goal of strengthening the control of the payments of social benefits.