An Post to continue welfare payments

AN POST will continue to provide payment services to social welfare customers, the Government confirmed yesterday.

The company has secured a contract from social welfare for five years, which is also central to maintaining the post office network.

Minister for Social and Family Affairs Mary Hanafin said the decision aids both social welfare recipients and An Post.

“The company is delivering payment services to over one million customers who are getting payments such as pensions, child benefit, one parent family and jobseekers’ payments,” she said.

“These arrangements play a significant role in ensuring that payment services are accessible to people through the network of local post offices throughout the country.”

Under the current contract, An Post delivered 38 million payments at a cost of €54 million last year.

The company has been providing the service to social welfare customers through its network of offices since 1992.

In recent years, however, the numbers availing of electronic payments has increased sharply.

Ms Hanafin said her department would be examining the range of options available from financial services both nationally and across the EU to deliver an appropriate service throughout Ireland.

This is in keeping with the ruling by the European Court of Justice last year in relation to the provision of such services.

An Post chief executive Donal Connell said the contract was essential to the maintenance of an extensive post office network throughout the country.

“We are fully committed to the provision of state benefit payment services and to extending the range of financial offerings available to all our customers.

“We will continue to work closely with the Department of Social and Family Affairs in delivering the very best of services throughout the country,” he said.

Chief executive of Irish Rural Link, which represents rural groups, Seamus Boland said the post office was an essential service and point of social contact in rural Ireland.

“It’s good news certainly. There was a fear they would not get it because of the EU ruling. For rural Ireland, An Post is an example of the good use of a public service and we are delighted the contract has been renewed,” he said.

Director of advocacy with Age Action Ireland, Eamon Timmins, expressed concern that rural post offices were shutting at an alarming rate. “Every post office that closes weakens the case for An Post maintaining the contract,” he said.

“Closures, combined with the lack of rural transport, make it harder and harder for older people to collect their pensions.”