Joan Burton (Dublin West, Labour) | Oireachtas source

I move amendment No. a1:

In page 5, line 19, after “8,” to insert “15,”.

Effective debt recovery is a key aspect of my Department's control policy. It creates a climate where people who have been overpaid know they have a responsibility to repay and that my Department will take appropriate steps to obtain recovery. The Comptroller and Auditor General has noted in recent audits of social welfare overpayments that the Department's legal capacity to recover overpayment is limited. The Department has signalled to the Comptroller and Auditor General its intention to review its overall approach to overpayment recovery and explore alternative options for recovery. The sums involved are significant and amount to approximately €350 million. I introduced measures in the Social Welfare Act 2012 in respect of the recovery of social welfare overpayments by way of weekly deductions from a person's ongoing social welfare entitlements. This provided for a deduction of an amount up to 15% of the weekly personal rate payable to a person on social welfare payment for the purpose of the recovery of an overpayment. These provisions came into effect at the end of January of this year and full figures about recovery from deductions for 2013 will not be available until the end of the year. However, early analysis indicates the new recovery provisions are increasing the amount recovered from deductions from ongoing payments. Recovery from deductions has increased by over 20% for the four months since the introduction of the measure, compared to 2012. The additional value is of the magnitude of €2.4 million. It is expected this will increase further as provisions are comprehensively applied through the remainder of the year.

The amendments I am proposing are aimed at further improving the Department's ability to recover overpayments by giving additional powers of recovery in the case of overpayments by way of a notice of attachment to be put in place.

The new arrangements contained in amendment No. 15awill allow for deductions from an overpaid person's earnings of up to 15% of his or her net weekly wages. The amendment also provides for money held by the overpaid person in a financial institution to be attached for the purpose of offsetting the overpayment. This measure will be used in circumstances where a person has been actively engaged with by the Department but still refuses to co-operate in the repayment of the debt and where there is evidence of an ability to repay. In addition, a final demand must have issued to the person concerned and there must be no other or alternative recovery options available. The only other option available to the Department in these circumstances is civil court proceedings. This provision will be used as a more efficient and cost effective alternative to civil legal proceedings. Other jurisdictions have formalised systems of overpayment recovery by way of deductions from earnings. Most recently, in the United Kingdom the Welfare Reform Act allows the Department for Work and Pensions to recover overpaid benefits by way of deductions from an individual's earnings with effect from April 2013.

Amendment No. a1 provides that the new overpayment recovery arrangements will come into force by way of a commencement order. The order will be made shortly after the enactment of the Bill and as soon as the necessary administrative arrangements have been made.

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