Write-Off’s On Welfare Payments Total More Than €15 Million Over Two Years.

Irish Taxpayers have carried the cost of more than €15 million in incorrect welfare payments over the past two years.

In the year 2024 alone, the Department of Social Protection (DSP) wrote off €7.97 million, up from €7.64 million in 2023. These write-offs occur when overpayments are deemed irrecoverable; for example, where the recipient has died or the cost of pursuing same outweighs likely recovery.

Approximately 75% of the write-off’s relate to individuals who are deceased; smaller amounts (typically under €100) are also cancelled when recovery is judged uneconomical. The DSP operates a structured debt-management policy, issuing annual statements to claimants and reserving the right to reopen a case, if a recipient’s financial circumstances improve.

Of the 2024 total, nearly €3.1 million was attributed to non-contributory state pensions, while some €1.44 million related to the contributory state pension, and around €841,000 to illness benefits. Other six-figure losses include invalidity pensions, jobseeker’s benefit, widows/widowers’ pensions and one-parent-family payments.

Over the same 2023-24 period, welfare overpayments in total amounted to €273 million, with a marked rise from €115.8 million in 2023 to €157.5 million in 2024. These overpayments stem from instances of false or misleading information by claimants, as well as errors by either applicants or the department itself.

The DSP states that overpayments in any year account for less than 0.5 per cent of total welfare expenditure. In 2023 the department recovered more than €87 million, and in 2024 the figure rose to just over €100 million.

Where overpayments occur, the DSP seeks full recovery, while balancing collection efforts with fair treatment of claimants with limited means. Deductions of up to 15 per cent of ongoing welfare payments may be made. If a debtor is in full-time employment and refuses to repay, an “attachment of earnings” order may be considered. The department emphasises it will strive to avoid causing “undue financial hardship” in any repayment plan.