Brian O'Shea (Waterford, Labour)
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Question 110: To ask the Minister for Social and Family Affairs if it is the preferred policy of his Department to make all social welfare payments payable through banks; his views on whether this puts further charges on social welfare recipients; and if he will make a statement on the matter. [9763/05]

Brian O'Shea (Waterford, Labour)
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Question 111: To ask the Minister for Social and Family Affairs the reason 80% of all social welfare payments were made through post offices three years ago and only 55% are so made now. [9764/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 110 and 111 together.

My Department's payment delivery policy is to ensure that the most modern range of payment options is available to our customers. This approach is adopted to ensure that customer service is continually improved by providing access to a wide range of payment options and new services and facilities in the money transmission market.

The current range of payment options offered by my Department includes payment at post offices by means of a pension order book, electronic or manual post draft, issued to the customers designated post office each week, payment by cheque to the home address of customers, and direct payment to customers' bank or building society accounts by electronic fund transfer. Where possible, my Department provides customers with the payment option which best suits them.

The growth in the last number of years of customers opting for EFT payments reflects the changing profile of my Department's customer base, the increasing use of electronic banking services in society generally, and the extension of an EFT payment facility to more of my Department's schemes. Recent industrial action affecting postal delivery services has had some impact on the number of people opting for EFT as an alternative to cheque payments.

Some 59% of customers currently receive payment through their local post office, 10% are paid by cheque through the postal system, and 31% receive direct electronic payment through their bank or building society account. It should be noted that An Post does not provide an EFT facility for social welfare customers except in relation to the Post Office Savings Bank which requires a seven day advance notice of withdrawal.

The issue of bank charges payable by my Department's customers is a matter for each customer having regard to their personal banking arrangements. It is understood, however, that some financial institutions offer special facilities to elderly persons involving free banking or reduced banking charges.