Taxpayers Bear the Burden of Over €15 Million in Erroneous Welfare Payments
Taxpayers have recently been burdened with over €15 million in erroneous welfare payments spanning the last two years. In the previous year alone, the amount of benefits written off reached €7.97 million, increasing by over €300,000 from €7.64 million in 2023.
Welfare Payment Write-Offs and Statistics
The Department of Social Protection (DSP) explained that these welfare overpayments were cancelled when there was “no prospect of future recovery.” Remarkably, 75% of the write-offs were linked to deceased individuals. Additionally, many minor overpayments, particularly those under €100, were deemed uneconomical to recover.
The DSP highlighted their structured debt management policy, which includes issuing annual statements to affected customers. According to data obtained through Freedom of Information (FOI), approximately €3.1 million of the written-off payments were associated with non-contributory state pensions. Furthermore, €1.44 million came from contributory state pensions, while around €841,000 was related to illness benefits.
Breakdown of Welfare Overpayments
- Non-contributory state pension: €3.1 million
- Contributory state pension: €1.44 million
- Illness benefits: €841,000
- Other significant payments include invalidity pensions, jobseekers’ benefits, and family-related pensions.
In total, the DSP recorded welfare overpayments of €273 million during the 2023-2024 period. Notably, there was a significant surge in overpayments last year, amounting to €157.5 million, compared to €115.8 million the prior year. The DSP attributed these discrepancies to false or misleading information provided during benefit applications, as well as errors made either by applicants or the department itself.
Recovery Efforts and Policies
Despite the substantial amount written off, the department remains proactive in recovering overpaid funds. In 2023, they retrieved over €87 million, while this figure climbed to over €100 million the following year. The DSP noted that overpayments make up less than 0.5% of total welfare expenditure.
The most significant overpayments last year occurred in pandemic unemployment payments, state pensions, and jobseeker’s allowances. When overpayments arise, individuals are generally liable to reimburse the amount received without entitlement.
The DSP maintains that recovery efforts must balance fairness with financial impact on individuals. For ongoing welfare recipients, deductions typically reach up to 15%. If an individual fails to repay after obtaining full-time employment, the DSP may consider automated deductions from their earnings.
Ultimately, the Department of Social Protection strives to work collaboratively with customers to minimize undue financial hardship while addressing welfare payment discrepancies.
