Taxpayers Bear the Burden of Over €15 Million in Incorrect Welfare Payments
Recent reports reveal that taxpayers have shouldered the responsibility of over €15 million in erroneous welfare payments over the past two years. In 2023 alone, more than €7.97 million in benefits were written off, marking an increase of over €300,000 compared to the previous year’s figure of €7.64 million.
Breakdown of Incorrect Welfare Payments
The Department of Social Protection (DSP) indicated that these write-offs occurred when there was little hope for recovering the funds. A staggering 75% of the overpayments were made to deceased individuals. Furthermore, payments of less than €100 were not pursued due to being deemed uneconomical.
Financial Impact and Debt Management
The DSP confirmed that write-offs could be revisited if the financial situation of the affected individual improved. Their structured debt management policy includes issuing yearly statements to affected customers.
- €3.1 million in non-contributory state pension overpayments written off in the last financial year.
- €1.44 million related to contributory state pensions.
- About €841,000 linked to illness benefits.
- Other significant write-offs included invalidity pensions, jobseekers’ benefits, pensions for widows and widowers, and one-parent family payments.
Increase in Welfare Overpayments
During the period spanning 2023 and 2024, total welfare overpayments reached €273 million. Notably, last year saw a dramatic rise to €157.5 million in overpayments, compared to €115.8 million in 2023.
Causes of Overpayments
The DSP noted these overpayments often arise from false or misleading information supplied by benefit applicants. Errors can occur both on the applicant’s part and through departmental oversight.
Individuals who receive excessive payments are required to refund the amount they were not entitled to. Overpayments account for less than 0.5% of total government expenditure each year.
Recovery Efforts by the Department of Social Protection
The DSP reported recovering over €87 million in 2023, with that number climbing to just over €100 million in the following year. They emphasized the importance of fairness and reasonableness when recovering overpayments.
- Deductions for ongoing welfare recipients can be up to 15% of payments.
- For individuals with full-time jobs refusing to repay, the department may initiate an attachment of earnings order.
The Department remains committed to working alongside customers, ensuring that recovery plans do not impose undue financial hardship.
