Vol. 554 No. 5
1643 Ms O. Mitchell asked the Minister for Social and Family Affairs the stage her Department's considerations are at for aligning payment for social welfare recipients wishing to have their benefits paid directly to a bank account, which involved them missing a week's payment; when she intends to implement changes to the procedures to remove this unacceptable practice; and if she will make a statement on the matter. [15504/02]
1680 Dr. Upton asked the Minister for Social and Family Affairs if she will review the way in which pensions are paid via the bank; if they could be lodged weekly and on the same basis as book payments are made; and the other steps which can be taken to encourage pensioners to use this method of payment. [16029/02]
I propose to take Questions Nos. 1643 and 1680 together.
Pensions and other long-term social welfare payments have traditionally been paid by payable order books which are encashable on a weekly basis at post offices. Payment can also be made, at the person's choice, by electronic fund transfer direct to bank accounts. This choice is highlighted for all applicants at the time they make their claims.
The payment of pensions by EFT is generally made every two weeks in arrears. Whereas payment by payable order is weekly in advance.
Most people who opt to be paid by EFT do so at new claim stage so there is no interruption of the flow of payments once the claim is allowed. Where an existing recipient opts to switch from pension book to EFT the different payment cycle may result in an interruption in payment. Each person, regardless of the payment method, receives the same quantum of payments over the lifetime of his-her claim.
When payment of pensions by EFT was introduced in 1993, payments were made every four weeks in arrears. The payment frequency was changed in April 2000 and payments are made fortnightly since then. The question of aligning payment frequencies is under consideration and I intend to make further progress on this issue in 2003.
