Taxpayers have been left covering the cost of more than €15 million in incorrect welfare payments over the past two years.
Figures show that €7.97 million in welfare benefits were written off last year — an increase of over €300,000 on the €7.64 million total recorded in 2023, reports Breaking News.
According to the Department of Social Protection (DSP), welfare overpayments were written off either partly or fully in cases where there was “no prospect of future recovery” of the funds.
Around 75 per cent of these cases involved deceased recipients, while overpayments under €100 were considered uneconomical to recover, reports Breaking News.
The department added that if a write-off occurred, it could later be reviewed should the person’s financial situation improve.
An internal note stated: “[We operate] a structured debt management policy in line with normal good practice in recovery of overpayments, including yearly statements issued to customers,” reports Breaking News.
Freedom of Information data revealed that nearly €3.1 million of last year’s written-off funds related to the non-contributory state pension.
A further €1.44 million could not be recovered from the contributory state pension, alongside about €841,000 in illness benefit, reports Breaking News.
Other payment categories where six-figure write-offs occurred included invalidity pensions, jobseekers’ benefit, widows’ or widowers’ pensions, and one-parent family payments.
The DSP confirmed that between 2023 and 2024, welfare overpayments amounted to a combined €273 million, reports Breaking News.
There was a sharp rise in 2024, with overpayments reaching €157.5 million — up from €115.8 million the previous year.
Officials said these overpayments could occur when false or misleading information was supplied by those claiming benefits, reports Breaking News.
They added that errors by either claimants or the department itself could also contribute to such overpayments.
“Persons who have been overpaid social welfare have a liability to refund the overpayment as they have been in receipt of a payment to which they were not entitled,” said an information note, reports Breaking News.
“Overpayments in any given year represent less than 0.5 percent of total expenditure,” reports Breaking News.
The largest overpayments last year were linked to the pandemic unemployment payment, the state pension, and jobseekers’ allowance.
The department said it had recovered more than €87 million worth of overpaid benefits in 2023, reports Breaking News.
In 2024, that figure rose to just over €100 million, according to documents obtained through Freedom of Information requests, reports Breaking News.
A note stated: “Where an overpayment occurs, the department seeks to recover the full value of the overpayment,” reports Breaking News.
“Because of the potential impact of overpayment recovery on customers with limited means, appropriate controls are required to ensure fairness and reasonableness,” reports Breaking News.
If a person continues to receive welfare payments, deductions of up to 15 percent are typically applied.
For those now in full-time employment who refuse repayment, the department said it may seek an “attachment of earnings order” for automatic deductions from their bank account, reports Breaking News.
The department added that it aims to work with customers to ensure repayment arrangements do not cause “undue financial hardship,” reports Breaking News.
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