I do not consider that the comparison with the time limits for claiming tax relief from the Revenue Commissioners is appropriate to the recovery of social welfare overpayments. Furthermore, it is important to point out that the Revenue Commissioners are not restricted by a time limit in terms of collecting tax liabilities. In addition, the Department, unlike the Revenue Commissioners, does not apply interest or penalties on the amounts owing.
Overpayment recoveries amounted to over €53m in 2012; this is the latest year that figures are available. The Department reports on overpayments and recoveries to the C&AG and the PAC who are both keen that overpayment recoveries should increase above current levels.
People who have incurred an overpayment from the Department have a liability under law to refund the amounts involved. They have received monies to which they were not entitled and the Department’s policy is that an overpayment will remain on the customer’s records until fully recovered.
Most social welfare customers fully declare their means and circumstances and, therefore, do not receive more than their entitlements. However, where customers fail to declare fully their means or circumstances, they may receive payments to which they are not entitled and this can result in an overpayment.
Until the introduction of recent legislation, the Department was limited in its capacity to recover overpayments and largely relied on the overpaid persons themselves agreeing to make repayments. Consequently, overpayments often remained outstanding for a long period of time which was very unsatisfactory from the Department’s point of view. The recent legislative changes will significantly enhance the Department’s ability to pursue overpayments from persons who are not making genuine efforts to repay their debts.
The Department does not maintain records of the number of overpayment recovery letters that are issued to customers as this is an ongoing process involving a range of scheme areas and local offices.
The Department’s policy is to ensure that every effort is made to prevent overpayments, but if they occur, they are regarded as a debt to the Exchequer and every effort must be made to recover the amounts due.
