Budgeting scheme extended

Up to 750,000 welfare recipients will be able to pay for utility services using their social services card under the Household Budgeting scheme, it was announced today.

The scheme, which was previously available to some 20,000 jobseekers and lone parents who received welfare payments through their social services card, is now being extended to all pensioners, carers and widows.

Under the Household Budgeting scheme, recipients can commit a fixed amount of their social welfare entitlement through An Post towards bills, including ESB, Bord Gáis, Eircom and local authority rents or mortgages.

Minister for Social and Family Affairs Mary Hanafin said the service was "a useful option for people looking to manage their money.”

Ms Hanafin said the facility will be extended to a range of other telecoms and utility providers.

“Knowing that regular payments are going towards the electricity, heating or rent can relieve a lot of pressure on families and individuals as they seek to manage their money," she said.

"An Post operates a network of over 1,200 post offices throughout the country, so this service is very accessible for all social welfare customers”, said Ms Hanafin.

The total payments cannot exceed 25 per cent of the basic weekly social welfare payment a customer receives and minimum payments must conform to guidelines set for each agency. Household Budget deductions will be itemised on the customers’ receipt when they collect their weekly payment.

According to figures from the Department of Social and Family Affairs, some 91 per cent of social welfare recipients receive their payment electronically direct to their post office or into an account in a financial institution.

In October 2009, some 757,280 customers were being paid by electronic transfer using their social services card at post offices. Over 550,000 further people had their benefits paid directly into their bank or financial institution.