Recovery of social welfare may cause destitution, groups warn

Two legal rights groups have said that recovery of social welfare overpayments by the Department of Social Protection may put people at risk of destitution.

The Free Legal Advice Centre and Community Law and Mediation have launched two guides aimed at helping people to understand their rights and obligations when a claim is made for return of money which the department says has been overpaid.

The two groups agree that the State must be able to recover money which has been incorrectly paid out, but say they are concerned that people on low incomes or reliant on social welfare could be unfairly targeted.

"We are not saying that the department should not claim back money that has been wrongly paid out; our concern is in the way that it is done," director general of FLAC, Noeline Blackwell, said.

The groups say that the Department of Social Protection can deduct up to 15 per cent of a person’s net weekly earnings without their consent.

“We want to ensure that the law is clearly understood by all sides so that the system of recovery operates in a fair way that respects human rights,” Ms Blackwell said.

FLAC said that 13.5 per cent of calls they received about social welfare last year were regarding overpayments, which is the third highest area of enquiry.

The guides stress that people who have received claims of overpayment should ask for evidence, and also that people should make sure that all communication with the department is in writing.

Both legal groups say that in the case the claimant agrees to repay the overpayment, he or she should not accept an agreement which could cause “undue hardship,” and should discuss an alternative repayment plan.

“While some people may understand immediately while the claim is being made against them, many more are distraught when an unexpected bill comes in with immediate demands for repayment,” Jane O’Sullivan with Community Law & Mediation said.

“We want to ensure that the law is clearly understood by all sides so that the system of recovery operates in a fair way that respects human rights,” Ms Blackwell said.

Last year the Department of Social Protection reviewed about one million social welfare claims, and recovered €83million in overpayments.

The department also released data in April which showed that it received more than 21,000 anonymous tip-offs of suspected welfare fraud in 2014.