The Irish State Is Still Pursuing Nearly €90 Million in PUP Overpayments

The Irish State is still dealing with the long tail of Pandemic Unemployment Payment (PUP) overpayments.

By early 2026:

• around 65,700 overpayments had been raised
• the total value was €139.5 million
• about €50.4 million had been recovered
• €89.1 million remained outstanding

Separate parliamentary material also showed that roughly 13,800 letters were issued in the second half of 2025 to people whose PUP records appeared to overlap with payroll data.

This is one of the clearest examples of emergency policymaking having long-term consequences. PUP was introduced at speed in March 2020 to get money to people who suddenly lost work during Covid-19. Years later, the clean-up is still ongoing through data matching, claimant correspondence and recovery action.

How Did We Get Here?

PUP was launched in March 2020 as an emergency income support for employees and self-employed people who lost income because of the pandemic.

At its peak:

• the payment was €350 per week
• more than 605,000 people were receiving it
• the overall scheme cost reached approximately €9.2 billion

After the scheme ended, the Department of Social Protection cross-checked around 30 million PUP payments against Revenue payroll data.

That review identified tens of thousands of cases where a person’s employment appeared to overlap with a PUP claim. Earlier figures in 2025 showed just over 43,000 assessed overpayments worth €105 million. By March 2026, the position had expanded significantly.

Why Overpayments Happened

A key point is that an overlap in the data does not automatically mean fraud or even definite wrongful payment.

Common reasons for cases being flagged included:

• a claimant returned to work but did not close their PUP claim on the exact date they resumed employment
• an employer put someone back on payroll while PUP was still being paid
• timing issues within a weekly payment system, especially where someone returned to work mid-week
• more complicated situations involving multiple jobs or irregular employment patterns

That is why official sources have been careful to describe many of these cases as apparent overlaps or possible overpayments until the facts are fully examined.

How Recovery Works

The Department of Social Protection has a number of ways to recover overpayments.

These include:

• deductions from current or future social welfare payments
• lump-sum repayments
• regular instalment arrangements
• attachment of earnings
• attachment to money held in financial institutions
• recovery from a deceased person’s estate

In practice, long-term recovery often happens through deductions from an existing welfare payment. The Department also cannot charge interest or fines on the overpayment itself.

What If You Get a Letter?

If you receive a letter about a possible PUP overpayment, it is important not to ignore it.

You are generally entitled to:

• be told what gave rise to the overpayment
• be told the amount involved
• be told how the Department proposes to recover it
• give your side of the story before a final recovery decision is made

If a formal decision is issued and you disagree with it, you can:

• ask for a review
• appeal to the independent Social Welfare Appeals Office

For decisions issued on or after 28 April 2025, the time limit to appeal is 60 days.

Welfare Overpayments and Tax on PUP Are Not the Same Thing

This is the most important distinction to understand.

1. DSP Welfare Overpayments

This is the €89.1 million issue.

It relates to cases where the Department of Social Protection says a person received PUP they were not entitled to and is now seeking to recover that money.

2. Revenue Tax Reconciliation on PUP

This is a completely separate issue.

PUP was taxable for Income Tax, but not for USC or PRSI.

• PUP paid in 2020 was not taxed at source
• any tax due was reconciled afterwards by Revenue
• for many PAYE workers, this was collected interest-free by reducing tax credits over later years
• from 2021 onwards, PUP was generally taxed in real time

So a PUP-related tax underpayment is a Revenue matter. It is not the same thing as a DSP welfare overpayment.

Key Takeaways

• nearly €90 million in PUP overpayments remained outstanding in early 2026
• around 65,700 overpayments had been raised
• many cases relate to payroll overlaps, not proven fraud
• people contacted by the Department have the right to respond, seek a review and appeal
• DSP overpayments and Revenue tax issues are two separate matters
• the Department cannot add interest or fines to the overpayment itself

Final Word

The PUP scheme was created during an unprecedented emergency and got support to hundreds of thousands of people quickly. But the speed and self-declaration model also created a long and complicated clean-up process.

That process is still ongoing, and for anyone who receives correspondence about a possible overpayment, the most important thing is to engage with it promptly and make sure their full circumstances are considered.