Crowe Queries Social Welfare Repayment Collection System

Dublin South West Sinn Féin TD Seán Crowe has highlighted what he claims is the unjust system in which social welfare overpayments, usually the result of administrative errors, are currently being withdrawn from social welfare claimants. Crowe claimed that recouping many of these small overpayments has a high financial cost in terms of time and resources and punishes those who can least afford to pay it back.

Deputy Seán Crowe said:

“People on Social Welfare who receive overpayments, through no fault of their own, are it would appear, being unfairly and systemically being targeted by Government. Overpayments made can sometimes be of very small sums of money but are hugely significant if you are reliant on a low income.

“Recouping this so-called ‘debt’ in some instances costs more than the actual overpayments themselves through bureaucratic costs, time and resources.

“A resident from my constituency from my constituency brought a letter to my attention this week. The correspondence, sent by post from Welfare demanded that the individual in question pay back immediately a sum of €20 which was overpaid into his account. It seems mean and heavy handed to claim back immediately a small sum of money like this, especially when the payment was not the fault of the recipient.

The Welfare letter also outlined repayment options but it was removed the 20 euro from his next payment without any consultation.

“It also concerns me that it doesn’t make any economic sense to take small sums of money back off social welfare recipients as the red tape and bureaucracy costs are more than likely to be higher than the original overpayment.

“A small sum of money can make a big difference to a person on social welfare.

“We have to face up to the reality that most social welfare payments in a time of rising costs are inadequate to meet many recipient’s needs. Many welfare dependent households are like others struggling to pay the bills or put food on the table. An additional few euro received in error could actually make a difference to people’s lives.

“Last year Sinn Féin called for an amnesty to allow those in receipt of overpayments in social welfare payments, through no fault of their own, to come forward without fear of penalties, prosecutions, or demands for their repayments.  Unfortunately the progressive proposals in the Sinn Féin  Bill was rejected by Minister Joan Burton.

“Is it fair that a Government can come to an agreement with tax defaulters and bankers worth millions of euro and then punish those on the lowest income, for mistakes not even of their own making?

“Surely the most vulnerable members of society should be protected not scapegoated and penalised for someone else’s mistakes and errors.”