Taxpayers Hit Hard by Over €15 Million in Mistaken Welfare Payments
Recent findings indicate that taxpayers are facing significant challenges due to erroneous welfare payments exceeding €15 million in the last two years. The year 2023 alone accounted for over €7.97 million in these write-offs, reflecting a rise of approximately €300,000 compared to the previous year’s tally of €7.64 million.
Breakdown of Incorrect Welfare Payments
The Department of Social Protection (DSP) reported that a notable 75% of the overpayments were allocated to deceased individuals. Payments smaller than €100 were not pursued, as they were considered uneconomical. Details of these erroneous payments include:
- €3.1 million in non-contributory state pensions
- €1.44 million related to contributory state pensions
- €841,000 associated with illness benefits
- Other significant sums linked to invalidity pensions, jobseekers’ benefits, pensions for widows and widowers, and one-parent family payments
Financial Impact and Assessment
During the fiscal period of 2023 and 2024, welfare overpayments escalated to a staggering €273 million. In the previous year alone, overpayments surged to €157.5 million, overshadowing 2023’s figure of €115.8 million.
The DSP noted that write-offs may be reassessed should the financial status of the affected individuals improve. To manage the financial implications, they issue annual statements to those impacted.
Causes of Welfare Overpayments
According to the DSP, many overpayments stem from inaccurate or misleading information provided by applicants. Mistakes can arise from both the applicants and errors within the department itself. Individuals who receive excessive payments are mandated to repay the funds they were not entitled to.
Despite these challenges, overpayments represent less than 0.5% of the government’s annual expenditure.
Recovery Efforts by the Department of Social Protection
The DSP successfully recovered over €87 million in 2023, with projections indicating a rise to slightly above €100 million in the subsequent year. They stress a commitment to fairness during the recovery process, with deductions for ongoing welfare recipients capped at up to 15% of their payments. Furthermore, if individuals with full-time employment refuse to repay the debt, the department may pursue an attachment of earnings order.
The Department of Social Protection remains dedicated to collaborating with customers to ensure that recovery plans do not impose undue financial hardship.
