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Household Budget Facility

Dáil Éireann Debate, Wednesday - 30 April 2014

Wednesday, 30 April 2014

Questions (287, 367)

Finian McGrath

Question:

287. Deputy Finian McGrath asked the Minister for Social Protection if she will clarify the position on section 290 and the concerns of the Money Advice and Budgeting Service (details supplied); and if she will make a statement on the matter. [18581/14]

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Willie O'Dea

Question:

367. Deputy Willie O'Dea asked the Minister for Social Protection the reason she has discontinued the lough payment scheme whereby household budget scheme deductions from a person's social welfare payment will be discontinued for any Money Advice and Budgeting Service client using the lough payment scheme; if she will reinstate the lough payment scheme until there are more suitable and affordable saving, credit and payment options available to the financially marginalised members of society who depend on this scheme; and if she will make a statement on the matter. [19374/14]

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Written answers

I propose to take Questions Nos. 287 and 367 together.

The Household Budget facility, operated by An Post on behalf of the Department of Social Protection, provides customers with a facility to have their household utility bills and social rents deducted directly from their weekly social welfare payment.

While some 33,000 housing authority tenants have availed of the facility in terms of social rents, the housing authorities were experiencing difficulties with tenants subsequently cancelling the arrangements. In order to address this issue, legislative amendments, specific to housing authority rents, have been introduced to ensure that once a person participates in a household budgeting arrangement, they cannot withdraw from the arrangement without the consent of the relevant housing authority or housing body.

This change has been implemented in respect of all new applications made under the Household Budget scheme in respect of housing authority rents from January 2014, which will support the collection of rents for local authorities and will also facilitate the pilot phase of the new Housing Assistance Payment (HAP).

There are a number of Money Advice and Budgeting Services (MABS) companies which have been assisting and supporting their clients with a facility to make direct deductions from their social welfare payments for bill paying purposes through historical arrangements put in place by Cork MABS and the Lough Credit Union, using the Household Budget facility operated by An Post. This arrangement is known as the Lough Payment Scheme or MABSlink.

The purpose of the Household Budget facility is to facilitate deductions from social welfare payments for specified creditors. The Lough Payment Scheme catered for a variety of creditors, some outside those specified for the Household Budget facility. The local MABS companies involved are working closely with those currently availing of the Lough Payment Scheme to help put alternative arrangements in place.

The Citizens Information Board, which has statutory responsibility for the Money Advice and Budgeting Service (MABS) is liaising with the local MABS companies concerned. In light of the profile of MABS clients affected, particular effort is being made to ensure that suitable alternative options are made available and that clients will be fully supported through the transition to the alternative arrangement. The current arrangements will continue for existing customers on an administrative basis in the interim.

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