Dáil Éireann debate -
Tuesday, 10 Oct 2000

Vol. 523 No. 4

Written Answers. - Social Welfare Payments.

Róisín Shortall

Question:

171 Ms Shortall asked the Minister for Social, Community and Family Affairs the reason it is not possible for pensioners who choose payment by direct debit to be paid weekly rather than fortnightly; if his attention has been drawn to the fact that in many instances the change from weekly to fortnightly payments represents a severe burden on pensioners; if he will take steps to ensure that pensioners are fully aware of the change to fortnightly payments when requesting a change to direct debit, as many complain that they are not informed beforehand; and if he will allow a weekly payment when so requested by individual pensioners. [21161/00]

Róisín Shortall

Question:

172 Ms Shortall asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the problem for pensioners who automatically lose out on a week's payment when they switch to payment by direct debit; if he will undertake to address this problem by making payments for weeks in advance rather than retrospectively; and if he will make a statement on the matter. [21162/00]

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

I propose to take Questions Nos. 171 and 172 together.

Pensions and other long-term social welfare payments have traditionally been paid by pension order books which are encashable on a weekly basis at post offices. Payment can also be made, at the person's choice, direct to bank accounts through electronic fund transfer.

Payment of pensions by electronic fund transfer is generally made every two weeks in arrears. Most pensioners who opt to be paid by EFT do so at new claim stage so there is no interruption of the flow of payments once the claim is allowed. Where an existing pensioner opts to switch to EFT the different payment cycle will mean that there is an interruption in payment.

The question of aligning payment frequencies is under active consideration but due to other pressing demands on available resources it may not be possible to accommodate this change for some time. However, additional steps are being taken to ensure that pensioners who opt to have their payments changed to EFT are fully aware of the different payment cycles.

Róisín Shortall

Question:

173 Ms Shortall asked the Minister for Social, Community and Family Affairs if there has been any costing undertaken by his Department of the administrative savings in payments by direct debit rather than by weekly cheque; if so, the results of such costings; and if he will make a statement on the matter. [21163/00]

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

The cost to my Department of issuing a social welfare payment by cheque is estimated to be 50p, of which 30p represents the cost of postage. No direct charge accrues to my Department in respect of payments issued by electronic funds transfer or direct credit to customer accounts at financial institutions.

My overall aim, in the context of improving customer service, is to ensure that the widest range of payment methods is available to my Department's customers. This includes providing access to the new services and facilities which have become available in the money transmission market so that my Department's customers can choose the service which best suits their personal needs and preferences.