An Post retains Social Welfare contract

Social welfare recipients to continue receiving payments through local post office as a result of the decision.

The decision means social welfare recipients will continue to receive their payments through their local post office.

An Post has retained the contract for administering the payment of social welfare entitlements for the next five years, Minister for Social and Family Affairs Mary Hanafin announced.

Ms Hanafin said the main reason for renewing the contract was to ensure “continuity of services for all customers”.

“An Post is delivering payment services to over one million customers who are getting payments such as pensions, child benefit, one parent family payments 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.”

Ms Hanafin said her department would be examining the options available from financial service providers both in Ireland and within the EU, to see what is available and what is the most effective and efficient service for customers over the coming years.

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

Under the current contract with the department, An Post delivered 38 million payments at a cost of €54m in 2007.

The company has been providing the service to social welfare customers through its network of offices since 1992. In recent years the numbers availing of electronic payments has increased greatly.