Priority Question on using standard bank account to deliver social welfare payments through An Post

Question No: 59 Ref No: 33202/13

To ask the Minister for Social Protection her role in supporting the provision of the standard bank account through An Post for delivering social welfare payments through the Post Office network; and if she will make a statement on the matter. – Thomas Pringle.

* For PRIORITY answer on Tuesday, 9th July, 2013.

R E P L Y

I am pleased to advise the Deputy that An Post recently became the preferred bidder for the delivery of over-the-counter cash services to Department of Social Protection customers subject to contract agreement. Last year, some 43.7million payments, or 50% of all payments made by my Department, were issued in cash through An Post’s network of 1,152 post offices nationwide. Although negotiations remain to be concluded, An Post’s selection as preferred bidder for the new contract will continue to contribute to the vibrancy of rural economy. However, as you know, at this juncture, An Post itself does not provide a Standard Bank Account.

The Department of Social Protection is a key player in the payment services sector in Ireland with over 87 million payments issued to customers in 2012. It envisages an environment whereby social welfare payments delivered to our customers will ultimately be fully electronic. This goal is in line with wider Government policies. It is based on the objective of better public services and more effective e-payments as set out in the Public Service Reform Plan, the eGovernment Strategy 2012-2015, and the recently published National Payments Plan.

I understand it was noted in the Strategy for Financial Inclusion report that the post office network has the potential to play a key role in the delivery of Standard Bank Accounts. As the roll out of Standard Bank Account is being driven by the Department of Finance, it will be a matter for that Department and my colleague Minister Noonan T.D. to work with all potential providers, including An Post, over the coming months to optimise the availability of the Standard Bank Account nationally.

Supporting achievement of financial inclusion for customers is of fundamental importance to the Department. In this respect, the Department is working with the Financial Inclusion Working Group established by the Department of Finance to support access to the new Standard Bank Account.

The Department’s Payment Strategy is contingent on the roll out of the Standard Bank Account. The combination of the National Payments Plan, the Standard Bank Account and the Department’s Payment Strategy can, as three inter-dependent initiatives, realise tangible benefits in delivering a more efficient payments landscape in Ireland and can grow opportunities and benefits for consumers and business alike over the medium term.
My Department will continue to work with the Department of Finance and the Financial Inclusion Working Group to progress the roll out of the Standard Bank Account.

ENDS

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