Séamus Brennan (Dublin South, Fianna Fail)

The report into indebtedness, Do the Poor Pay More? was commissioned by OPEN with funding from my Department's money advice and budgeting service and the Society of St. Vincent de Paul. The report focuses on the situation of those for whom debt has become a dominant aspect of their lives and has come to carry serious social and health implications. The revelations on debt from an earlier study by OPEN in 2004, Living on the Book, prompted the organisation to seek a partner and launch further research into indebtedness, its prevalence and depth, among lone parents. The report has 13 key recommendations that are being examined by my officials.

To date I have met the Irish Banking Federation and the Irish Payment Services Organisation to explore ways in which those on low incomes can better access financial services. The meeting identified a number of areas in which progress could be made in facilitating wider access to financial services, including customer identification requirements and universal bank accounts.

In regard to customer identification, the IBF has agreed to communicate with its member retail banks to ensure staff is reminded of procedures for opening an account and the attendant customer identification requirements. It has further committed to liaising with the financial regulator, IFSRA, on this issue. The existing guidance notes on money laundering set out, as good industry practice, the measures to establish identity that might reasonably be expected of credit institutions. However, they state that any measures adopted should not deny a person access to financial services solely on the grounds that they do not possess certain specified identification documentation.

The banking industry has proposed the development of a universal bank account as an integral part of a national payments strategy. My Department will consider this issue as part of its review of current payment strategies. The IBF has assured me of its commitment in helping to deliver real progress on these and related issues. Since the introduction of the money advice and budgeting service in 1992, it has developed a good working relationship with the IBF.

The report found that 59% of lone parents surveyed were in arrears to the ESB. It also found that utility companies such as the ESB and Bord Gáis were not seen as totally transparent in their dealings with low-income families using pre-payment meters. I have invited the ESB to meet me to discuss the report and I also intend to meet the Irish League of Credit Unions.

Those who receive social welfare payments through the electronic payment option operated by An Post can opt to avail of its household budget scheme. Under this scheme, An Post makes regular deductions of up to 25% of a person's social welfare payment towards their household costs, such as rent or mortgage payments to local authorities, ESB, Bord Gáis and Eircom. This ensures people are not faced with a single large bill for these services.

I emphasise that I consider it a priority that those on welfare supports or on low incomes are given the opportunity to achieve financial inclusion so they can attain control over their own finances. This is an important step on the ladder to better prospects and an improved quality of life for them and their families.

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