Dáil Éireann debate -
Tuesday, 18 May 1999

Vol. 504 No. 7

Written Answers. - Social Welfare Payments.

Denis Naughten

Question:

268 Mr. Naughten asked the Minister for Social, Community and Family Affairs the reason for the change in the payment system for disability benefit claims; the plans, if any, he has to introduce a similar system for other social welfare payments; and if he will make a statement on the matter. [12609/99]

Denis Naughten

Question:

269 Mr. Naughten asked the Minister for Social, Community and Family Affairs the cost of providing disability benefit payments under the system paid through post offices; and if he will make a statement on the matter. [12610/99]

Denis Naughten

Question:

270 Mr. Naughten asked the Minister for Social, Community and Family Affairs the projected cost of providing all disability benefit payments through the electronic funds transfer system; and if he will make a statement on the matter. [12611/99]

Denis Naughten

Question:

271 Mr. Naughten asked the Minister for Social, Community and Family Affairs the projected cost of providing all disability payments by issuing cheques to the home address of the claimant; and if he will make a statement on the matter. [12612/99]

Denis Naughten

Question:

272 Mr. Naughten asked the Minister for Social, Community and Family Affairs the pro jected cost savings, if any, of transferring the disability benefit payments from the current system to the new system proposed by his Department; and if he will make a statement on the matter. [12613/99]

Denis Naughten

Question:

273 Mr. Naughten asked the Minister for Social, Community and Family Affairs the reason sub-post offices were not informed of the proposed changes in the payment of disability benefit; the reason claimants are not given a choice of continuation of their payment by the present system; the plans, if any, he has to review the exclusion of the current payment method as an option for claimants; and if he will make a statement on the matter. [12614/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

I propose to take Questions Nos. 268 to 273, inclusive, together.

My Department wrote recently to 11,700 disability benefit recipients who are being paid by pension book advising them of the transfer of administration of their claims from the Department's Longford office to Dublin. Over 20,000 such claims were transferred some years ago from cheque payment to pension book payment, as a temporary measure, pending the establishment of my Department's integrated short-term schemes – ISTS – computer system. This system has now been in operation for some time and it was decided to transfer these claims back to the original payment system and consolidate the administration of all disability benefit claims in one location and on one computer system. This will ensure better customer service and better management of the disability benefit system.

The ISTS computer system offers the customer a range of weekly payment methods such as electronic funds transfer – EFT – direct to a bank or building society account or to a nominated account; cheque payment to the home address; or post-draft payable at the post office. The system does not support pension book payment.

Disability benefit payments generally are made by cheque or EFT and originally it was proposed that the long-term payments would be paid in the same way. However, in view of concerns which were expressed it was decided to offer the opting of payment by post-draft where people wish to continue payment at post offices.

There are currently 43,500 disability benefit claims in payment, including those claims which have recently been transferred from Longford. Some 11,000 of those claims are currently being paid by pension book with the remainder being paid by cheque or EFT. The average cost of the various payment methods varies; post-drafts and pension books cost 80p per transaction, cheques cost 50p per transaction, and EFT costs 3p per transaction.

Customers currently being paid by pension book have been asked to state which of the above payment methods they would prefer. Replies have not yet been received in most cases, so it is not possible at this stage to quantify the savings involved.

An Post was advised of the forthcoming change in administrative practices for those being paid disability benefit by pension book.

Denis Naughten

Question:

274 Mr. Naughten asked the Minister for Social, Community and Family Affairs the plans, if any, he has to reconsider the decision to put to tender all social welfare payments currently paid through post offices; the discussions, if any, he has had with An Post and the relevant unions prior to the decision to seek tenders; and if he will make a statement on the matter. [12615/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The current payments contract under which my Department purchases social welfare payments services from An Post will expire at the end of this year.

Under EU law, large public sector contracts must go to open tender. The question of putting this contract out to tender is currently being examined by my Department. There are a number of legal and business considerations that have to be examined and these are being looked at. These legal and business issues are complex and require in-depth examination and evaluation before any final decision can be made. My Department is currently in contact with the Office of the Attorney General regarding the legal considerations which arise in this regard.

An Post and its staff associations are aware of the legal requirements in this regard and my Department has been in regular contact with An Post management concerning this.

With regard to the future of post offices and the rural network in particular, I would like to put on record that I and the Government are committed to maintaining the network of post offices. This is Government policy as enunciated by my colleague, the Minister for Public Enterprise.

Richard Bruton

Question:

275 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs the studies, if any, he has conducted into the cost of living equivalent for different family units; and his views on whether a widow with a dependent teenager is poorly provided for under social welfare compared to the cost of living. [12657/99]

Deirdre Clune

Question:

282 Ms Clune asked the Minister for Social, Community and Family Affairs the financial provisions provided by his Department for widows; the plans, if any, he has to increase this assistance; and if he will make a statement on the matter. [12749/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

I propose to take Questions Nos. 275 and 282 together.

The widow's and widower's pension schemes recognise the particular financial difficulties that arise for people following the death of a spouse.

A widow(er)'s contributory pension is based on either the claimant's own or late spouse's social insurance record. In addition, a person may use the full record or the record over the previous three or five years to satisfy the yearly average condition.

From June, the weekly rate of the widow(er)'s contributory pension – £82.10 per week for those over 66 years of age – will be 114 per cent of the main rate recommended by the Commission on Social Welfare.

A widow's and widower's non-contributory pension is available to those, without children, who do not qualify for the contributory pension. This is payable subject to a means test. From June, the maximum rate of the widow(er)'s non-contributory pension – at £78.50 for those over 66 years of age – will be 109 per cent of the commission's recommended rate.

Title to these pensions also gives access to the free schemes, where appropriate. Special measures are in place to ensure that households do not suffer the loss of entitlements following the death of a spouse. Widows-widowers aged from 60 to 65 whose late spouses had been in receipt of the free schemes retain that entitlement.

A one-parent family payment is available to those widows-widowers, with children, who do not qualify for a contributory widow's-widower's pension. This payment is available to men and women who are parenting alone and it is designed to, first, provide basic income support, taking into account the special needs and requirements of single parents and, second, to encourage lone parents to return to the workforce so that, over time, they can achieve a greater degree of economic independence.

To this end, an earnings disregard of £115.38 per week is available under the one-parent family payment means test to those lone parents in employment.

There is no consensus internationally about the best way to estimate the needs of one type of household over another. A number of different methods have been explored but, given the uncertainties about which method produces the most satisfactory results, one cannot rely heavily on any particular set of scales now available in analysing poverty or income inequality.

The Economic and Social Research Institute is currently undertaking some analysis in this area for the working group examining the treatment of married, cohabiting and one-parent households under the tax and social welfare systems. It is planned to publish this report by mid-year.

The question of future improvements in social welfare provisions for widows and widowers – as for all social welfare clients – is a matter for consideration by the Government in a budgetary context.