Billy Kelleher (Cork North Central, Fianna Fail)
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131. To ask the Minister for Social Protection the number of persons who have been contacted by her Department in 2014 regarding scheme overpayments which were assessed against them prior to 2008; the number of these persons who received correspondence in relation to the way the overpayment arose, in view of natural justice, and were informed of their right of appeal; the number of old age pensioners who have had deductions of at least 15% of the personal rate placed on their pension payment to recover such overpayments without due regard to the Statute of Limitations for the recovery of a debt through civil proceedings, which is six years; and if she will make a statement on the matter. [43836/14]

Joan Burton (Dublin West, Labour)
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Overpayments are generally defined as “money obtained contrary to or in excess of a valid decision”. An overpayment will arise where, in accordance with Part 11 of the Social Welfare Consolidation Act 2005, a revised decision is made by a Deciding Officer on a claimant’s entitlement resulting in a retrospective reduction in their entitlement. In deciding whether or not the decision should have retrospective effect, Deciding Officers are required to have regard to the facts relevant to the decision on entitlement. Founding their decision on facts will ensure that the deciding officers’ actions can result in the Department pursuing all debts. Customers who have been overpaid have a liability to refund the overpayment (Section 338 of the Social Welfare (Consolidation) Act, 2005 (as amended) refers.

When a revised decision is made, the claimant is notified and given the opportunity to appeal the decision within 21 days. Once the right of appeal has been exercised (or not) the Department will then consider the recovery of the overpayment.

A debt to the Department of Social Protection may comprise of a single overpayment or a number of overpayments. Once an overpayment has been assessed, and the person has been notified, any correspondence thereafter seeking recovery would refer to the total amount of debt owed. Therefore, the Department does not have the information requested by the Deputy regarding the number of persons who have been contacted in 2014 regarding scheme overpayments which were assessed against them prior to 2008.

When seeking to recover an overpayment, the rate of recovery proposed will be the maximum repayment that the person can afford in order to recover the overpayment as quickly as possible. Although the Department is empowered to deduct 15% of the weekly personal rate payable in respect of an overpayment without the customer’s consent, an officer may, nevertheless, ask the customer to repay the debt at a higher rate, where it is considered that they have the ability to pay. If the customer does not consent, then a deduction of more than 15% cannot be implemented. Similarly, an officer can consider deducting less than 15% in certain circumstances. Once a deduction is put in place it is not recorded if this was as a result of the customer’s agreement or in accordance with Section 13 of the Social Welfare Act, 2012 which allows for a deduction of an amount up to 15% of the weekly personal rate payable to a customer without the customer’s consent.

A social welfare debt will not become statute barred for recovery. It remains with a debtor for all future entitlement payments, and can be collected thereafter from any remaining estate. There is no statute of limitations preventing the Department recovering its debts by deduction from entitlements. Effective debt recovery is seen as an important measure to safeguard public expenditure. Where someone has been overpaid social welfare it is important that this money is recouped.