Moves by the Department of Social Protection to encourage more social welfare recipients to have their payments made directly into their bank accounts, rather than collecting them at the post office, are being seen an attempt to undermine the post office network.
The department has begun issuing 7,000 letters to recipients of the contributory and non-contributory State pension, child benefit, invalidity pension and carer’s allowance, who collect their payments at their post-office, inviting them to consider a fund-transfer into their bank accounts.
Hundreds of letters have already been issued and more will be issued “in coming weeks”, said a spokeswoman.
A copy of a letter sent to a Sligo pensioner and dated March 6th, says: “You are currently in receipt of a State pension, non-contributory from this Department paid into your post office every Friday.
“An increasing number of pensioners are choosing to have their pension paid directly into their account.
“For greater convenience to you I invite you to consider having your pension paid directly into your current or deposit account. This gives you easy access with better personal security, and saves time.”
The man is then invited to fill in an enclosed form, to provide his bank details and to return it, marked “Freepost” to the department.
Postmasters alarmed
A number of TDs say they have been contacted by postmasters alarmed at the letters’ contents.
One postmaster, who did not want to be named, was in touch with Independent TD for Roscommon-South Leitrim, Michael Fitzmaurice, saying the issuing of these letters causes them "serious concern as to my livelihood and the viability of my post office.
“This Government appears to be trying to close down the post office network by stealth, in contradiction to their alleged support [for the post offices].”
Mr Fitzmaurice said there was a "bizarre situation" where the Government was "making all sorts of statements on how they are supporting rural Ireland on the one hand, but they turn around and urge people not to support their own local post offices on the other.
“The post office network is a cornerstone of rural life, and instead of trying to run it down the Government should be thinking of ways to support and grow the network. This is not the way to go about it.”
Rural Ireland
Fianna Fáil spokesman on communications, Michael Moynihan, said: "This is yet another attempt by the Government to undermine the post office network which is the very fabric of rural Ireland.
He said the Government was using “covert tactics, by issuing letters under the radar directly to social welfare recipients, in an attempt to undermine the post office network.
"The commitment that was made by Fine Gael and Labour to protect our post office network has been broken yet again."
A spokeswoman for the Department of Social Protection said many customers were choosing to have their payment made directly into their accounts.
‘Entirely voluntary’
“Any move to direct lodgement to an account would be entirely voluntary on the part of our customers who are free to retain their current cash payment arrangements.
“The department is conscious of the important role of the post office around the country, not only in respect of social welfare payments but also in offering other financial services such as paying bills and carrying out a range of banking services.
“The Government has consistently stated its commitment to maintaining the post office network as set out in the Programme for Government.
"In this regard, the Department of Social Protection will pay over €50 million to An Post under a contract for cash payment services to welfare customers this year."
