Dáil debates

Thursday, 9 February 2006

Priority Questions.

Social Welfare Benefits.

3:00 pm

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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Question 2: To ask the Minister for Social and Family Affairs his views on whether it is intended to introduce a new social services card for lone parents that will require the holder to collect lone parent payments between Thursday and the following Tuesday and that if this is not done, the payment will be forfeited; if his attention has been drawn to the difficulties that this could create for lone parents who are ill or away for a few days; if this decision will be reviewed; and if he will make a statement on the matter. [4760/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The one-parent family payment is the income support scheme for separated, unmarried and widowed persons and also for prisoners' spouses bringing up a child or children without the support of a partner. At the end of December 2005, the total number of one-parent family recipients being paid by my Department was 83,066, including 906 widowed persons. Under the scheme, lone parents are encouraged to maximise their income from different sources and the means test for this scheme provides for the exemption of significant levels of earnings and maintenance payments.

Following a review of the arrangements for administering the scheme, it was decided that services should in future be provided through my Department's local offices. The primary aim of providing services at local level is to improve customer service by reducing claim processing times through closer linkage with the local officer network. This also brings lone parents into direct contact with my Department's employment support services.

My Department processes new applications for the one-parent family payment at 36 social welfare local offices. The benefits of administering these claims at local level are already evident as the average processing time for claim applications has dropped from 16 weeks to an average of seven weeks since the change. Some 17,000 claims for the one-parent family payment are received each year — equivalent to 330 per week on average.

As part of the preparations for moving the administration of the one-parent family payment scheme to local level, some 44,000 one-parent family payment customers who prior to this were paid by means of an order book will, from the middle of this month, collect their payment in post offices by using their social services card. Under this system, the payment should be collected by close of business on the Tuesday following the Thursday payday. If the payment is not collected by then contact should be made with the Department. If the customer has been unable to collect the payment, for instance due to illness, work commitments, holidays etc., arrangements are made to have the payment reissued.

Additional information not given on the floor of the House.

This payment method has been in operation for certain one-parent families for some years. Approximately 6,000 one-parent family payment customers receive their payment weekly using this payment method and they are generally satisfied with the arrangement.

My Department has written to each lone parent customer advising him or her of the change of payment method. In addition, a meeting took place with lone parent representative associations at which the matter was discussed. Although existing customers on this payment method are satisfied with the system, I have asked my officials to review the situation regarding the period for collection of these payments with a view to extending it if possible. Any customer having difficulty with collecting the payment every week can contact the one-parent family payment section in the pension services office in Sligo which provides advice on a range of other payment options.

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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The Minister said that several reports in his Department have been put together and will be subject to ongoing review. Why start making unilateral decisions without consulting any groups representing lone parents? This may represent another obstacle or hurdle to vulnerable people. What happens if somebody falls ill on a Thursday morning and cannot go in to collect his or her money and is in hospital until the following Wednesday? Does the Minister not agree that the old book system, which allowed people three months to cash the payment, enabled them to deal with such a problem or go on a vacation?

This change is designed for administrative simplicity at minimum inconvenience to the bureaucrats but maximum inconvenience to the unfortunate people depending on this measly sum. This is a retrograde step. I ask the Minister to reconsider it. Would it not be better to give people the option to use a book order or the electronic system? That would take cognisance of the situation I have outlined.

I did not know this was happening until lone parents contacted me. They feel this places another obstacle before them. It seems to be consistent with some of the policies emanating from the Minister's Department which says one thing but does another to create further impediments for people.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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This new arrangement is a result of the localisation of the payment of one-parent family allowances which has reduced the processing time from 16 weeks to seven weeks. When preparing my response to the Deputy's question I read the background material, including the circular that issued about this change. It states that payments will be in the post office on Thursday and must be collected by Tuesday. I have instructed the Department to re-examine that urgently and instructed that a period of two weeks at least be allowed. It is not clear whether I can do this but I will know within a week or two if it is technically possible to do so.

I appreciate the Deputy's raising the matter and agree that the stated period is too short. This constraint already affects people on unemployment assistance and benefit and the computers in the post office network are set up on this basis. That is why the change was made. It was not to inconvenience anybody. I give an assurance that no lone parent will be without his or her funds for any period while we go through this process. Electronic funds transfer is available to people in the welfare system and an increasing number of people avail of it. They find it secure and easy to manage.

I ordered that review in recent days and specifically proposed that we push the time limit out to two or three weeks, but probably not much beyond that. Even within the existing period the funds do not disappear. One must make other arrangements to collect one's money because it cannot languish indefinitely in the post office.

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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I thank the Minister and assure him that the flexibility he suggests of even a couple of weeks would be very welcome.