asked the Minister for Social Welfare if his attention has been drawn to the fact that certain bank branches have a policy of not cashing social welfare cheques when they are crossed, which leads to considerable difficulties for social welfare recipients; if he has any plans to overcome the difficulties facing social welfare recipients arising from this policy by the banks; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Social Welfare Cheques.
5.
The majority of cheques issued by my Department are for disability benefit purposes and cheques which exceed £50 in value are crossed. While the banks have a formal policy that all crossed cheques, not just social welfare cheques, should be lodged direct to accounts, in practice banks do cash cheques for customers, including social welfare recipients, whether they are crossed or not. Cheques are also cashed regularly by supermarkets and other retail outlets. Where a person is known or can produce satisfactory evidence of identity there should be no great difficulty in cashing cheques. Satisfactory evidence of identity is obviously a necessary factor to prevent fraud or abuse.
The Deputy will be aware that on 14 April I launched new secure social welfare cheques with special high security features to prevent forgery. These include a chainlink watermark and a scratch invisible ink security feature. The new cheques are the first in the country to include a watermark. We have also circulated special information stickers for cash registers for retail outlets and banks. These have been widely welcomed.
The issue of the new cheques began on 15 April. The new cheques will be of considerable help to banks and traders. However, I am in touch with the banks in connection with difficulties experienced by persons cashing social welfare cheques at certain branches.
I thank the Minister for the comprehensive reply to the question. In the context of the contacts he has indicated he is having with the banks in relation to this problem, is it the intention of the Department to continue to use the crossing system of cheques over the sum of £50, in view of the new high security features introduced on 14 April? Is he aware that at least one of the major banks uses the crossing as a reason for refusing to deal with people they know very well in the community?
I think the case the Deputy is referring to applies to a particular branch or maybe a limited number of branches. It does not apply to that bank generally. This problem has arisen in some branches and that is why I mentioned that at the end of my reply. The £50 level is the general level used in banks, with pass cards, and so on, for security purposes. That system operates very satisfactorily at present. There are very few exceptions and I am following up that matter. In addition, we are improving security for all those who deal with cheques.
Has the Minister any plans to convert from paying by cheque to paying by plastic money? Will recipients of social welfare disability benefit or other benefits who are paid by cheque be able to get their cash at pass windows and so on some time in the near future?
That is a separate question. The development of the systems would, in future, enable the payments to be made in a variety of ways. Many people would have to co-operate. Clients would have to be interested in having the payments made in that way, and that is one of the potential developments or partial developments. For instance, some people opt to have child benefit payments made through the bank but most do not. Likewise, many people prefer to receive their unemployment benefits in cash, although some would be interested in other methods of payment. That is an area the modernisation and computerisation of the systems will facilitate.
I want to move to the next question. Progress is very slow today.
Given the slowness of postal deliveries sometimes and the fact that letters can go astray, would the Minister not accept that we would have a better service if people had the option of having a plastic card, going to the bank and getting the amount due? In this way these payments would not depend on the vagaries of the postal system.
There might be other vagaries. However, that might be technically possible and it is a matter which will be considered.
A final question from Deputy McCartan.
Would the Minister be disposed to raise with the banks the possibility of not insisting on crossed cheques being paid to bank accounts simplicitor? Time does not allow for me to illustrate what is the practice in the banks in this regard. Alternatively, would he be disposed to the Department waiving the crossing of cheques where specific instances are brought to his attention of difficulties in cashing cheques?
As regards the crossing of cheques for sums above £50, the traders and the banks accept the responsibility and the Department of Social Welfare do not. We will facilitate people any way we can. The step we have taken recently will considerably facilitate banks and traders. If the proper means of identification are used it is hard to see how there will be any serious problem. As regards the Deputy's questions, I am in contact with the banks about specific cases.