Dáil Éireann díospóireacht -
Wednesday, 4 Dec 1991

Vol. 414 No. 1

Written Answers. - Social Welfare Payments.

Eric J. Byrne

Ceist:

87 Mr. Byrne asked the Minister for Social Welfare if he will outline the reasons (1) he has three different methods of payment for social welfare recipients on unemployment assistance and (2) cheques under the cheque payment scheme cannot be cashed in post offices; if his attention has been drawn to (1) the difficulties people are having in getting banks to cash these cheques which are drawn on the Bank of Ireland Rotunda Branch and (2) the fact that unless a person has a personal account most banks will not cash these cheques and that often shops charge as much as 20p for cashing them; and if he will make a statement on the matter.

Minister for Social Welfare (Mr. Daly)

In the past the method by which a social welfare client was paid was dictated by the particular type of benefit or pension being paid. For the future I want to achieve a situation where the client has a range of options from which to choose. This will obviously take a number of years to achieve.

The majority of unemployed persons are paid in cash at local offices of my Department or at post offices. It is my intention to eliminate, over time, cash payments at the Department's local offices and to introduce alternative payment methods including cheques, order books etc. This move will improve the quality of service for unemployed persons and the need to attend at the local social welfare office each week to receive payment will be reduced.

The other payment methods currently in operation for unemployment clients are order books and postdrafts which are encashable at post offices. The use of these payment methods ensures that a range of payment options are available to unemployment clients and it also ensures that my Department are not relying on one sole paying agent.

In relation to cheques, the arrangements now in place for some unemployment assistance clients are similar to those that have been in operation for disability benefit clients for many years. The general client response to this payment method is very favourable. The majority of clients cash their cheques at banks and building societies and, in general, an encashment fee is not charged in shops and supermarkets.

I am not aware of any particular difficulties being experienced by unemployment assistance clients in cashing cheque payments. However, this is a matter that will be kept constantly under review as the new methods are introduced and expanded.