Ciarán Lynch (Cork South Central, Labour)
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Question 234: To ask the Minister for Social Protection if he will review the case of a person (details supplied) in County Cork; if he will offset the amount of €1,679.80 from the arrears of disablement benefit on grounds of financial hardship; if he will also reduce to €10 the amount to be deducted to clear the amount overpaid; and if he will make a statement on the matter. [47198/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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It is the Department's policy to seek recovery of overpayments as soon as possible.

In determining the appropriate rate of recovery of overpayments, the department considers all relevant facts or circumstances including how the overpayment occurred and a person's ability to repay. The department may withhold any arrears due to a customer including arrears due from another scheme or claim.

The person concerned incurred this substantial overpayment amounting to €18,636.20 from 2 January 2003 to 4 May 2005 when he failed to disclose his income from employment, while he was in receipt of One-Parent Family Payment. His local social welfare office wrote to him on 7/7/2005 notifying him of the overpayment and seeking his repayment proposals. In doing so it was suggested that he repay in a single lump sum or monthly instalments of €100 by standing order to the Department.

He chose neither, and from 7 July 2005 to 2010 while he was in employment, he did not repay any part of this overpayment. This is despite the fact that his income from employment was in excess of the average industrial wage.

The person's current weekly entitlement before deductions is:

Disablement Benefit: € 45.40

Illness Benefit (1/2 Rate): € 98.00 One-Parent Family Payment: € 285.40

€ 428.80

His current actual payments after deductions are:

Disablement Benefit: € 25.40

Illness Benefit (1/2 Rate): € 98.00 One-Parent Family Payment: € 275.40

€ 398.80

His current payments are €113.40 per week over the supplementary welfare allowance rate for a person of his circumstances.

On this basis, the department has determined that it is appropriate that the lump sum arrears due to him, in the sum of € 1,679.80, in respect of his claim for disablement benefit be offset against the existing overpayment and that he should repay €30 per week. On this basis, if the person remains on a social welfare payment, this overpayment will be recovered in approximately 11 years.

The department may review this repayment plan should his circumstances change.