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Annual Report of the Ombudsman 2004

Chapter 3 - Department of Education and Science - Compensation for Loss of Purchasing Power

Department of Education and Science

Compensation for Loss of Purchasing Power

I received a complaint from a retired secondary school teacher regarding loss of purchasing power. The complainant held an honours degree and was a recognised secondary teacher from 1957 to 1998. However, he was not in receipt of an honours degree allowance during this time. The complainant applied for the appropriate arrears and eventually received payment in respect of the honours degree allowance in 2002, backdated to 1957. However, he considered that he should be entitled to compensation for loss of purchasing power. The complainant had written to the Department of Education and Science in this regard but did not receive a reply.

Having examined the background to this complaint, I requested the Department to review this case with a view to awarding appropriate redress to the complainant. In this regard, I referred to the guidelines on redress, issued in conjunction with the 2001 Annual Report of the Ombudsman which state that: ‘Where refunds or payments of benefits have been delayed or withheld over an extended period of time as a result of an error, misinterpretation, oversight or other similar action on the part of a public body, the principle of redress, and good administrative practice demands that a general scheme of compensation should be in place to cater for the loss of purchasing power of the payments made.’

The Department advised me that, following legal advice, it agreed that compensation for loss of purchasing power should be made. It indicated that payment of this compensation would take account of inflation and would be linked to the consumer price index. The complainant was advised of this and the case was closed. Some 6 months later, I found it necessary to reopen this case as, despite several enquiries, the complainant had not yet received the payment from the Department. I regard the failure by a public body to honour a commitment made as serious maladministration. I therefore contacted the Department regarding the delay in honouring its commitment to make the payment of compensation for loss of purchasing power. Following my further intervention, the Department paid the complainant the sum of €46,513. This amount issued to the complainant in July 2004.

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