asked the Minister for Social Welfare if he will consider the payment of certain social welfare payments by electronic transfer/standing order/credit transfer to people's bank accounts or post office accounts, thus freeing substantial numbers of staff to do other necessary work; and if he will make a statement on the matter.
Written Answers. - Social Welfare Payments.
25.
My Department operates a wide range of payment systems and has a policy of developing more modern facilities using the most up-to-date computer systems. At present, disability benefits are paid by cheque, unemployment payments are made mainly in cash while longer-term payments such as pensions and child benefit are paid mainly via books of vouchers cashable at nominated post offices.
My Department is actively considering ways of reducing the amount of cash used at employment exchanges. Cheques and electronic fund transfer (EFT) are being considered but these cannot of course be introduced without first installing computerised systems. Unemployment payments are the last area of the Department to be computerised and the computerised systems now in use in the Dublin area, which will be extended nationwide over the next few years, give much greater flexibility in regard to the method of payment at the local offices.
The possibility of providing pensioners with the option of having their pensions paid directly into Post Office or bank accounts has been under active consideration for some time. The results of surveys carried out by the Department suggest, however, that only a small percentage of pensioners are interested in having their pensions paid directly into a post office or bank account. Accordingly, for the foreseable future, the vast bulk of payments to pensioners will continue to be made by means of books of orders cashable at post offices. As a first priority, therefore, it has been decided to concentrate the Department's computer resources on developing a computerised pension and allowance book-printing system. This system is being introduced on a phased basis from July 1987 and will provide greatly improved security features for pension order and other books. It will also make the administrative system for handling these books much more cost-effective.
In general EFT is seen as a medium to long term solution in view of the fact that many of the persons receiving social welfare payments do not have active bank accounts. There are ongoing discussions with the banks and with An Post in this area.
The issue of pension books and cheques using computer systems is a very efficient and cost-effective operation and the benefits of utilising the most up-to-date technology is already being realised in the disability benefit, child benefit and pension areas. However, in the Employment Exchanges, where the handling of large amounts of cash every week is labour intensive, it can be expected that the introduction of new payment systems will enable staff to be diverted to do other necessary work, for example, in the area of controls. The replacement of cash by other payment methods would also open up the possibility of having a more flexible policy in relation to the frequency of signing-on at local offices. Less frequent attendance at local offices would result in a more dignified service for the clients with the elimination of long queues and it would enable my Department to operate a more selective and intensive range of anti-abuse measures.