60,000 will not get social welfare over bank glitch

At least 60,000 people will be unable to receive their social welfare for the second week running today as the Ulster Bank fiasco enters its tenth day.

For the second time in just over a week, the beleaguered bank has been unable to process the payments of customers on social welfare, which are due today, because of its IT crisis.

Fears have also been raised that if Ulster Bank’s banking problem is not resolved by Tuesday next week, some 48,000 parents will not receive their the monthly child benefit and household benefit payments.

However, despite suggestions last night that there is a possibility the crisis may continue until Wednesday, an Ulster Bank spokesperson insisted the computer problems and resultant backlog would be solved by Monday.

In an attempt to address the ongoing issues, the Department of Social Welfare has told Ulster Bank to have extra cash on hand in its branches today as people attempt to access their weekly social welfare payments.

“The Department has been liaising with Ulster Bank advising them of the additional monthly payments due to our customers next week,” a spokesperson for the department said.

“Ulster Bank has advised they are preparing for the possibility of additional footfall in their branches if the problems are not fully rectified and the possible requirement for additional cash.”

Ulster Bank said they are progressing with resolving the massive computer error that has crippled three banks in two countries.

“We continue to work around the clock to clear the backlog of payments caused by the Royal Bank of Scotland groupwide IT issue,” an Ulster Bank spokesperson said. “We are making progress, which is increasing our confidence that we will restore a full service by the beginning of next week.”

Meanwhile, Ulster Bank has postponed a number of GAA marketing events in light of the scandal facing the financial institution.

Speaking after RBS Group, of which Ulster Bank is a part, confirmed it is cancelling its hospitality “wine and dine” client packages for Wimbledon in an attempt to limit the PR damage, the group’s Irish section said similar measures are taking place here.

While the Ulster Bank spokesperson said the firm has “not postponed or cancelled any hospitality packages at upcoming events” as there are none to postpone, she said GAA marketing plans in Dublin and Donegal have been rescheduled. The move has taken place “to ensure that all our resources are focused on working through the backlog of payments” still affecting customers.

It is also reported that RBS is considering taking legal action against the software company responsible for the system that has crashed.

US company CA Technologies, which manufactures the CA-7 system at the core of the problem, has refused to comment on the threat of litigation.

The problem is estimated to have affected 17 million RBS group customers and the long-term cost of the glitch is still being counted.