Written answers

Tuesday, 24 March 2015

Department of Social Protection

Post Office Network

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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223. To ask the Minister for Social Protection her views on the future of the post office network (details supplied) and the distribution of pensions; and if she will make a statement on the matter. [11771/15]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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227. To ask the Minister for Social Protection the reason her Department is sending letters to social protection claimants encouraging them to switch their payment method from the post office to the bank; her views on this strategy; her further views that the continued partnership between her Department and the local post office network should be preserved and supported; and if she will make a statement on the matter. [11855/15]

Photo of Clare DalyClare Daly (Dublin North, United Left)
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230. To ask the Minister for Social Protection the reason her Department is encouraging pensioners to transfer their pension payments to a bank account instead of the post office, in view of the substantial undermining of local post offices which this move would represent. [11895/15]

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael)
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247. To ask the Minister for Social Protection the reason her Department recently issued a letter (details supplied) encouraging State non-contributory pensioners to have their pensions paid into a bank account. [12072/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 223, 227, 230 and 247 together.

I am very conscious of the important role of the post office around the country, not only in respect of social welfare payments but also in offering other financial services such as paying bills and carrying out a range of banking services. The Government has consistently stated its commitment to maintaining the post office network as set out in the Programme for Government. In this regard, the Department of Social Protection will pay over €50m to An Post under a contract for cash payment services to welfare customers this year.

The recent issuance of letters to randomly selected recipients of State Pension (Contributory and Non-Contributory), was a trial. It was being done to determine the best means of communicating with people about payment options. It was a very small trial in that letters were sent to just under 1% of customers.

Customer engagement with the trial was entirely voluntary. There are no negative consequences for customers who chose not to engage. All payment options (cash, cheque, EFT) continue to be fully available to customers (where relevant). The Department has not introduced changes nor does it intend to.

The move to electronic payments in our society undeniably creates a challenge for the current business model of An Post. In this context I am pleased to note that An Post has tendered for the provision of a new transaction account. I look forward to that becoming available in the not too distant future as it will provide alternative payment opportunities for this Department's customers.

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