Written answers

Wednesday, 20 April 2016

Department of Social Protection

Social Welfare Payments Administration

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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60. To ask the Minister for Social Protection to consider reversing the policy of systemically transferring post office business to private banks as social protection transactions account for 30% of all post office business and an estimated 50% including spin off transactions; if this is an attempt to initiate a privatisation process of our post office network; and if she will make a statement on the matter. [7569/16]

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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61. To ask the Minister for Social Protection if she is aware of letters being sent out to casual and part-time welfare claimants encouraging them to provide bank details for their payments; and if she will make a statement on the matter. [7570/16]

Photo of John HalliganJohn Halligan (Waterford, Independent)
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66. To ask the Minister for Social Protection her views on correspondence (details supplied) which was recently issued to casual workers encouraging jobseekers to use financial institutions rather than the post offices; if it is best practice to actively encourage recipients to use alternative financial institutions, given that the Government has backed processes to secure and develop the post office network; if the Government should be actively supporting the post office network given that it is the full owner of it; and if she will make a statement on the matter. [7618/16]

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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92. To ask the Minister for Social Protection why she is sending letters to jobseekers who work casual and part-time indicating that their payments can only be received at financial institutions; why she does not give such persons the choice of collecting payments at post offices; and if she will make a statement on the matter. [7784/16]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 60, 61, 66 and 92 together.

The Government is committed to the maintenance of the Post Office network and to the development of a Standard Bank Account by An Post. Mindful of the current and ongoing discussions on Government formation any further development of policy will be a matter for the incoming Government.

The current position is that the department has a cohort of jobseeker customers who are classified as casual jobseekers. These are in-work customers who can claim a jobseekers payment for 2 to 3 days per week or who work week on/week-off. These customers are paid by cheque each week. Not all customers will be paid every week due to their changeable work patterns.

I want to emphasise that these customers have been paid by cheque due to the changing nature of their work/claiming patterns and the short turn-around time to issue payments. It is important to note that they are not paid via post offices under the department’s existing cash payments contract with An Post.

In line with the National Payments Plan, my department is seeking to reduce its usage of cheques as a payment method; this is not only a matter of decreasing the significant costs associated with cheques in the department and wider economy but also of moving to a more secure method of payment and enhancing customer convenience.

When paid by cheque, customers have the option of lodging them direct to their accounts or negotiating them at banks or the Post Office. The evidence available to the department is that the vast majority of the department’s customers paid by cheque choose to lodge them direct to their accounts.

The department has developed its payment capacity in respect of changing work and claiming patterns and is able to offer payments direct to accounts in financial institutions for casual Jobseeker customers thereby increasing customer convenience. This is in line with wider departmental policy where the focus is on ensuring that in-work customers are paid by the most convenient method possible.

Consequently the department has written to its casual Jobseeker customers asking them to provide their account details to enable direct payments to financial institutions.

I want to emphasise that the department does not issue these cheque payments to Post Offices, they are issued directly to the department’s customers. This process does not reduce the number of existing cash payments through Post Offices under the current contract between the department and An Post.

I want to reiterate that what the department is doing is moving customers from cheque payments to the much more secure, customer convenient and cost effective payment method of payment directly into accounts in financial institutions. This is entirely consistent with the National Payments Plan and in line with payment methods that now prevail across the economy. The department must consider the most efficient payment method for our customers who are in employment most of whom get their salary payment into bank accounts. To have weekly income (work + welfare) payable in two different ways is a highly inappropriate and costly way of dealing with people in employment. The department’s focus must be on our customers.

Customer choice will be maintained. Customers, if they wish, may continue to receive cheque payments in the medium term.

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