Vol. 534 No. 3
221 Mr. Kenneally asked the Minister for Social, Community and Family Affairs the arrangements which have been put in place in respect of people who receive social welfare cheques and do not have bank accounts; and if he will make a statement on the matter. [10362/01]
My Department issues over half a million cheques every month and is not aware of any systematic problems regarding the encashment of cheques by social welfare recipients. Cheques are but one of a range of payment methods offered by my Department. Approximately, 10% of clients receive payment by cheque at present.
Recently, some banks introduced a policy whereby cheques must be lodged and cleared before value is given to the customer. With the exception of a small number of payable orders which are drawn on the Paymaster General, cheques issued by my Department are drawn on the Bank of Ireland which has given an assurance that the recent changes in its cheque encashment policy will not affect social welfare cheques. This arrangement is, of course, subject to the banks being satisfied regarding the identity and bona fides of the customer.
While the exact figures are not available, it is estimated that the majority of social welfare recipients cash their cheques at retail outlets and, as such, any change in bank practice does not impact upon them. If the Deputy is aware of any individuals who have experienced difficulties in cashing their cheques, perhaps he would provide me with the relevant details and I will arrange to have the matter examined further.
