Written answers

Tuesday, 27 September 2022

Department of Employment Affairs and Social Protection

Social Welfare Payments

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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321. To ask the Minister for Employment Affairs and Social Protection if she will authorise the payment of eligible social welfare payments into an account (details supplied) given the limited banking choices that are available in Ireland; and if she will make a statement on the matter. [47029/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department provides two main payment method options for its customers: payments in cash at post offices or payments direct to customer accounts in financial institutions. My Department intends, where possible, to continue to offer its many customers the choice of being paid in cash at the post office or directly into an account in a financial institution by Electronic Fund Transfer (EFT).

For some social welfare schemes, it can be mandatory for a payment to be collected in cash at a post office. For example, some social welfare scheme rules require a customer to prove that they are resident in the state and are available for work. These payment method restrictions are limited and in most cases a customer can choose the payment method most convenient for them.

Social Welfare payments made directly into customer accounts by EFT can be paid into any financial institution, whether they are commercial banks, credit unions or An Post. This includes new online banks, also known as ‘Fin Techs’, provided the accounts in these institutions have a valid BIC and IBAN which complies with Single Euro Payment Area (SEPA) rules.

I can confirm that my Department is able to make EFT payments to the financial institution named in the details supplied and that it has been doing so successfully for a couple of years.

This is in line with EU Regulation 260/2012 (the SEPA Regulation) which forbids restricting payments to specific financial institutions within the Single Euro Payments Area (SEPA). Therefore, the Department is required to make payments to all financial institutions licensed by the Central Bank of Ireland and is prohibited from favouring any Irish financial institution over one in another European Union member state or within the wider SEPA zone.

In Ireland, the Central Bank is the competent authority to ensure compliance with Regulation 260/2012. This regulation came into effect in Ireland in 2014. As the competent authority, the Central Bank of Ireland has the power to impose penalties on any Government Department for non-compliance with the Regulation.

If the Deputy is aware of a specific case where a customer of the Department has had difficulty getting paid into a specific financial institution, which is SEPA compliant, then I would be grateful if she could bring this matter to the attention of my officials as soon as possible.

I trust this clarifies the matter for the Deputy.

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