Written answers

Tuesday, 11 October 2022

Department of Employment Affairs and Social Protection

Social Welfare Payments

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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496. To ask the Minister for Employment Affairs and Social Protection the payments that have been made to An Post in each of the years 2017 to 2031 for the delivery of social welfare payments in post offices; if she will outline the calculation process for determining these payments; and if she will make a statement on the matter. [49706/22]

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.

Cash welfare payments are governed by the Department’s Cash Payment Services Contract with An Post which was signed in December 2019 and came into effect in January 2020. This contract ran for two years, from 1 January 2020 to 31 December 2021. After the two year contract period was completed, the Department had the option to renew the contract for a further year, which was executed.

The Cash Payment Services contract allows for 4 such annual renewals, i.e. to 31 December 2025. Given the consistently high level of service delivered by the company, it is my intention that this contract be renewed again with An Post for 2023.

The annual agency fees paid to An Post from 2017 to date (under the terms of the current and of the previous Cash Payment Services contracts) are set out in the following table.

Year Agency Fee Paid
2017 €51,565,680.00
2018 €50,806,680.00
2019 €49,760,632.00
2020* €51,826,256.00
2021** €49,506,400.00

*Agency fees are paid in advance to An Post in monthly instalments with a final reconciliation carried out in the following year. The 2020 agency fee was €47,965,624.00 based on the level of transactions carried out by An Post that year. However, the company was also owed an outstanding balance carried forward of €3,860,632.00 which resulted in a final pay over of €51,826,256.00.

**The 2021 fee figure is provisional pending the final sign-off on the 2021 figures by both the Department and the company. This formal sign-off is expected to be carried out shortly.

The fees are calculated on a transaction basis as set out in the publicly tendered contract. The transaction fees are set out in three bands. The first band fee relates to the first 10 million payments cashed by An Post, the second band relates to the next 10 million transactions cashed by An Post and the third band relates to each subsequent payment cashed. The actual transaction fees set out in each of the three bands cannot be released due to the commercial nature of the contract and to comply with both national and EU procurement rules.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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497. To ask the Minister for Employment Affairs and Social Protection if the once-off payment for carer’s, recently announced in Budget 23, will be issued once per carer or once per care recipient similar to the carer’s support grant; and if she will make a statement on the matter. [49718/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The €500 Cost of Living payment referred to by the Deputy is a lump sum payment to those carers who are eligible for the Carer’s Support Grant. Unlike the Carer’s Support Grant, which is paid in respect of each person being cared for, the new lump sum payment is a single lump sum paid to the carer, irrespective of the number of persons being cared for, in response to the current cost of living crisis. This payment will be made in November. . Recipients of Domiciliary Care Allowance will also receive the €500 Carer’s Support Grant.

It is worth noting that in circumstances where the care recipient is in receipt of a long-term disability payment of Disability Allowance, Blind Pension or Invalidity Pension in their own right, they too will receive the €500 Cost of Living lump-sum Payment in November.

The €500 Cost of Living payment is part of a range of measures put in place for carers as part of Budget 2023. Other measures announced include:

- Cost of Living Double Payment to Carers in October

- Carers will also receive the Christmas Bonus Double Payment in early December

- €12 increase in the maximum rate of Carer’s Allowance and Carer’s Benefit with effect from January 2023 with proportionate increases for people receiving a reduced rate

- €2 increase for each Qualified Child, bringing rates to €50 for Over 12s and €42 for Under 12s from January 2023

- Half-rate Carer’s Allowance will be disregarded in the means assessment for Fuel Allowance with effect from January 2023

The Government acknowledges the important role that family carers play and is fully committed to supporting carers in that role. This commitment is recognised in both the Programme for Government and the National Carers’ Strategy.

I can assure the Deputy that I will continue to keep the range of income supports provided to family carers by this Department under review and will ensure that consultations with carer representative groups continue so that the overall objectives of the carer income support schemes provided are met.

I trust this clarifies the matter for the Deputy.

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