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Dáil Éireann díospóireacht -
Thursday, 18 Feb 1993

Vol. 426 No. 3

Written Answers. - Social Welfare Benefits.

Róisín Shortall

Ceist:

56 Ms Shortall asked the Minister for Social Welfare the plans, if any, he has to introduce alternative payment methods for social welfare recipients such as EFT into Bank and Post Office accounts; and if he will make a statement on the matter.

I am committed to providing social welfare customers with improved services. One of the service aspects receiving attention related to the methods used for making payments under the various schemes. I want to provide a range of payment methods which will be more convenient for our customers and will ease the administration of cash payments.

In order to create the necessary environment for improved service to clients I have decided that existing cash payment cases will be offered more modern and flexible payment arrangements on a phased basis.

My Department has recently concluded an agreement with An Post to undertake the extra work arising for post offices. This will ensure that social welfare customers can receive a truly modern service, with appropriate payment methods. An Post is developing services which are broadly analogous to electronic funds transfer in addition to an already expanded range of methods used in post offices in the social welfare payment process.

An Post is, and will continue to be, the main paying agency for social welfare customers. Before the recent agreement, An Post was managing all pension payments, the majority of child benefit cases and about one third of unemployment payments.

An Post now makes significantly more unemployment payments — currently close to 50 per cent of the total. As circumstances permit, additional unemployment cases will continue to be transferred to An Post. An Post also now manages 13,000 disability benefit weekly payments and ultimately that number is expected to increase to 30,000 cases.

In parallel, we have been developing alternatives to An Post for those persons who, for one reason or another, find that payment via the commercial banks and certain other financial institutions would be more suitable for them. One of the new methods being offered is electronic fund transfer or EFT.

Following a pilot EFT operation which commenced on 7 April 1992 all child benefit recipients were circularised last year and they were offered the opportunity to switch to EFT. Nearly 40,000 people have opted for this facility. The new arrangements for them come into effect from April of this year.
EFT was also piloted for a small number of unemployment assistance cases and this pilot scheme is working well.
I have recently decided to extend the option to avail of EFT to certain pensioners and I will be announcing further details shortly.

Tony Gregory

Ceist:

57 Mr. Gregory asked the Minister for Social Welfare the reason a person (details supplied) in Dublin 12 has been refused unemployment benefit; whether this position is likely to change; and if he will make a statement on the matter.

The person concerned has been employed on a part-time basis for some considerable time and claiming unemployment assistance for days of unemployment.

In April 1991 social insurance cover was extended to all employees earning £25 per week or more. As a result, over 26,000 part-time workers were brought into social insurance and can now be eligible for unemployment, disability, maternity and treatment benefits.

Changes in the benefits system were required to accommodate this group. These changes came into force on 4 January, to coincide with the change in the benefit year.

The entitlement of the person concerned was examined to see whether he could qualify for unemployment benefit from January 1993 on the basis of PRSI contributions paid in respect of his employment in the 1991-92 contribution year.

It is a condition of entitlement to the extended unemployment benefit scheme that a person has suffered a substantial loss of employment. It was established that the person concerned was continuing to work on the same part-time basis as heretofore. Accordingly, as he had not suffered a loss of employment he was not entitled to unemployment benefit from January 1993.
The operation of this condition has been affecting some part-time workers who had established work patterns and were already entitled to unemployment benefit. I am monitoring the effects of this new condition and the other changes which were made from January this year and I will be advising the Government of my findings.
The person concerned continues to be entitled to receive unemployment assistance on each day that he is unemployed. His present rate of assistance, which takes account of his earnings from employment, is £2.82 per day. If he is dissatisfied with the decision he can make an appeal to the independent Social Welfare Appeals Office.
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