Written answers
Tuesday, 24 May 2011
Department of Social Protection
Electronic Payments System
6:00 pm
Paschal Donohoe (Dublin Central, Fine Gael)
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Question 189: To ask the Minister for Social Protection if the target, which came from a Government decision of 7 December 2004 on increasing the use of e-payments by Government Departments and in the public sector, of having 96% of cheque payments changed by the end of 2010 was met; and if she will make a statement on the matter. [12405/11]
Paschal Donohoe (Dublin Central, Fine Gael)
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Question 190: To ask the Minister for Social Protection if he will provide a breakdown of the percentage of payments under each scheme carried out by electronic fund transfer to financial institutions, by electronic information transfer via An Post and by cheque in tabular form; and if she will make a statement on the matter. [12406/11]
Paschal Donohoe (Dublin Central, Fine Gael)
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Question 191: To ask the Minister for Social Protection her e-payments strategy; and if she will make a statement on the matter. [12407/11]
Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 189 to 191, inclusive, together.
Government policy aims to facilitate and promote greater use of electronic payments in the economy in the interests of developing a modern payments environment in Ireland. My Department plays an important role in this regard.
The Department currently issues well over 80 million payments in respect of over 50 welfare schemes on a weekly, monthly and annual basis depending on the scheme type. These are delivered via electronic transfers to An Post and to banks, building society accounts and certain credit unions. There has been a significant increase in the use of e-payments in my Department since the Government decision in 2004 to which the Deputy refers. The initiatives taken by the Department to date have seen the percentage of customer using electronic payment transmission instruments rising from 38% in Jan 2004 to 91% in January 2011. Pension books containing personal payable orders were phased out in September 2009. Over this period arrangements have also been put in place to provide electronic payment transfers to those living in residential institutions. By the end of 2010, less than 9% of payments were issued by cheque. A detailed breakdown of payments for 2010 by scheme and method is set out in the following table.
The Department also made good progress in extending electronic payments to its own staff. By end 2010 approximately 96% of staff received their salary payments by electronic fund transfer (EFT) and it is intended that this figure will rise to 100% by end July. In addition 99% of staff who incurred travel and subsistence costs were reimbursed by electronic fund transfer (EFT). We will continue to apply strategies and solutions that harness suitable opportunities in the technology and financial services sectors to improve existing services, maximise efficiencies and support financial inclusion and customer service.
In this regard, my Department is currently finalising a new payment strategy through which the Department will continue to modernise the payment of welfare benefits. The emerging strategy is compatible with national Government policies and objectives such as better public services, more effective e-payments and the National Payments Implementation Programme. The strategy, which takes into account international developments in delivering welfare payments, the need for good and effective controls and the costs associated with making these payments, will be published later this year.
Percentages of payments by scheme and payment method from January to December 2010 | |||||
%Cheque | %Postal Voucher | %EIT* | %EFT | %Total | |
State Pension ( Contributory) | 0.3 | 0 | 44.3 | 55.4 | 100 |
State Pension ( Transition) | 0.04 | 0 | 30.14 | 69.82 | 100 |
State Pension ( Non-Contributory) | 0.2 | 0 | 76.52 | 23.28 | 100 |
Pre-Retirement Allowance | 1.5 | 0.01 | 64.6 | 33.9 | 100 |
Illness Benefit | 27.97 | 0 | 0.32 | 71.71 | 100 |
Invalidity Pension | 0.31 | 0 | 52.04 | 47.65 | 100 |
Occupational Injury Benefit | 1.37 | 0 | 72.94 | 25.69 | 100 |
Disablement | 26.33 | 0 | 0 | 73.67 | 100 |
Disability Allowance | 0.3 | 0 | 59.7 | 40 | 100 |
Child Benefit | 0 | 0 | 37.81 | 62.19 | 100 |
Widow's/Widower's/Surviving Civil Partners/Guardians Con Pen | 0.49 | 0 | 60.82 | 38.69 | 100 |
Widow's/Widower's/Surviving Civil Partners/Guardians Non Con Pen | 0.25 | 0 | 68.27 | 31.47 | 100 |
Deserted Wives Benefit/Allowance | 0.12 | 0 | 74.24 | 25.64 | 100 |
One Parent Family Payment | 0.07 | 0.01 | 51.9 | 48.02 | 100 |
Maternity Benefit | 6.19 | 0 | 0 | 93.81 | 100 |
Family Income Supplement | 1.48 | 0 | 0.67 | 97.85 | 100 |
Carers Allowance | 0.55 | 0 | 60.82 | 38.63 | 100 |
Carers benefit | 0 | 0 | 11.55 | 88.45 | 100 |
Rent | 100 | 0 | 0 | 0 | 100 |
Supplementary Welfare Allowance | 31.99 | 0 | 51.96 | 16.05 | 100 |
Back to Work | 0.21 | 0 | 2.88 | 96.91 | 100 |
Blind Person Pension | 0.28 | 0 | 55.64 | 44.09 | 100 |
Jobseekers Benefit | 36.63 | 0.04 | 59.82 | 3.51 | 100 |
Jobseekers Allowance | 8.52 | 0.07 | 75.3 | 16.12 | 100 |
Smallholders | 0 | 0 | 68.61 | 31.39 | 100 |
Farm Assist | 1.04 | 0 | 35.34 | 63.63 | 100 |
Total | 8.76 | 0.01 | 51.98 | 39.25 | 100 |
*EIT – Electronic Information Transfer
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