Dáil Éireann Debate, Tuesday - 26 July 2022
1217. Deputy Claire Kerrane asked the Minister for Social Protection if her Department has engaged with banks on securing reduced fees for persons in receipt of social welfare payments; and if she will make a statement on the matter. [40213/22]
View answerOverall responsibility for the banking industry rests with the Department of Finance while regulation is carried out by the Central Bank of Ireland. The Department of Social Protection has no remit in relation to the fees charged by financial institutions to their own customers.
My Department provides two main options for payment method for its customers: payments in cash at post offices or payments direct to customer accounts in financial institutions. My Department intends, where possible, to continue to offer its many customers the choice of being paid in cash at the post office or directly into an account in a financial institution by Electronic Fund Transfer (EFT).
Social Welfare payments made directly into customer accounts can be paid into any financial institution, whether they are commercial banks, credit unions or An Post. Within this range of financial institutions there are a range of account options which charge varying fees. Many bank customers avail of reduced bank fees, depending on the financial institution with whom they bank and the type of account they hold.
Every person receiving a Social Welfare payment by EFT has the right to choose which financial institution they wish to use to receive their payment.
In addition, the European Union (Payment Accounts) Regulations 2016 stipulate that any consumer who is legally resident in the European Union and who does not already have a payment account with a credit institution in the State has the right to open and use a payment account with basic features. These include a stipulation that such accounts be offered free of charge for a period of not less than 12 months.
It should be noted that Social Welfare payments made via the post office network incur no fee whatsoever for the claimant.
I trust this clarifies the matter for the Deputy.
