The repayment of social welfare overpayments is regulated by a code of practice, Statutory Instrument No. 227 of 1996. 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 and, in this regard, that every effort be made to recover overpayments in full.
Where an overpayment has been assessed, the person concerned is afforded an opportunity to bring to the notice of the Department or health board any views he or she wishes to offer on the assessment of the overpayment and the proposed method of repayment. The person's views are taken into consideration before the matter is finalised. There is provision within the code for the repayment of an overpayment to be deferred, suspended, or cancelled, or for the rate of repayment to be reduced depending on the circumstances of the case. When determining the method and rate of repayment, the authorised officer is required to give consideration to any facts or circumstances relevant to the question of the recovery, and the circumstances in which it arose.
The code of practice already ensures that account is taken of a person's ability to repay an overpayment, whether this is attributable to misunderstanding or fraudulent intent, while at the same time ensuring that moneys incorrectly paid are recovered. In 2003, 17,000 cases of fraud, costing €13.7 million, were discovered, while customer or third party error accounted for 23,000 cases, at a cost of €17.6 million. Almost €17 million was repaid to the Department last year for overpayments.