Dáil Éireann debate -
Thursday, 26 Jun 2003

Vol. 569 No. 5

Written Answers. - Social Welfare Payments.

Seymour Crawford

Question:

60 Mr. Crawford asked the Minister for Social and Family Affairs the number of social welfare recipients for whom payment is being reduced due to an earlier overpayment; the estimated number of overpayment cases in 2002 and to date in 2003; the number of those cases arising from departmental error; the costs to her Department of those errors; and if she will make a statement on the matter. [18077/03]

Minister for Social and Family Affairs (Mary Coughlan)

At present, some 17,500 customers are having deductions made from their current entitlements in respect of overpayments. Most of the deductions are in respect of overpayments which arose in previous years. A total of 38,628 overpayments, with a value of some €28.74 million were recorded in 2002, while 17,724 cases with a value of some €14.21million have been recorded to date this year. The number of overpayment cases is quite small relative to the number of payments issued. In 2002 some 938,000 weekly payments were made in respect of almost 1.5 million beneficiaries.

The number of overpayments attributed to departmental error in 2002 was 2,849, with a value of some €1.47 million. The number recorded so far this year is 1,365 with a value of some €0.72 million. Overpayments attributed to departmental error constitute between 7% and 8% of all overpayment cases, and represented, in money terms, 5% of the total value of all overpayments. Some cases of departmental error arise where a person returns to work after payments have been prepared for issue. If such cases were to be amended it would result in payments being delayed. Overpayments which arise in these cases are subject to recovery at a later date.

The repayment of all social welfare overpayments is governed by a code of practice. The code requires that, in the context of overpayments, due account be taken of the interests of taxpayers and social insurance contributors who finance the various social welfare payments as well as the ability of the person concerned to repay. In this regard, every effort is to be made to recover overpayments in full.

There is provision within the code, however, for repayment of an overpayment, to be deferred, suspended or the rate of repayment reduced, depending on the circumstances of each case. In the case of overpayments caused by departmental error, the code provides that repayment of an overpayment may be reduced or cancelled but only where the person could not reasonably have been expected to be aware of the error.