Taxpayers Suffer as Mistaken Welfare Payments Exceed €15 Million
Taxpayers are currently facing severe challenges due to erroneous welfare payments surpassing €15 million over the past two years. The figure for 2023 alone reached €7.97 million, which represents an increase of approximately €300,000 compared to the €7.64 million recorded in 2022.
Breakdown of Incorrect Welfare Payments
According to the Department of Social Protection (DSP), a significant 75% of these overpayments were made to deceased individuals. Payments less than €100 were deemed uneconomical to pursue. The details of the erroneous payments are as follows:
- €3.1 million in non-contributory state pensions
- €1.44 million related to contributory state pensions
- €841,000 associated with illness benefits
- Other amounts linked to invalidity pensions, jobseeker benefits, and family payments
Financial Impact and Assessment
During the fiscal years 2023 and 2024, total welfare overpayments surged to an astonishing €273 million. In the preceding year, overpayments reached €157.5 million, overshadowing the €115.8 million noted for 2023. The DSP may reevaluate these write-offs if the affected individuals’ financial situations improve.
Causes of Welfare Overpayments
Many overpayments result from inaccurate or misleading information submitted by applicants. Mistakes can stem from both the applicants and errors within the DSP. Individuals receiving excessive funds must repay any amounts they were not entitled to. Nonetheless, overpayments account for less than 0.5% of the government’s annual expenditure.
Recovery Efforts by the Department of Social Protection
In its recovery efforts, the DSP successfully recouped over €87 million in 2023, with expectations of rising to more than €100 million in the following year. They emphasize their commitment to fairness in the recovery process, capping deductions for ongoing welfare recipients at 15% of their payments. Additionally, if individuals with full-time jobs refuse to repay their debts, the department may pursue an attachment of earnings order.
The Department of Social Protection remains focused on collaborating with recipients to ensure that recovery efforts do not impose undue financial hardships.
