Varadkar renews €52M social welfare contract with An Post

Minister for Social Protection Leo Varadkar has today renewed his Department’s contract with An Post to provide pensions, Child Benefit and social welfare payments in cash at Post Offices.

The Minister formally signed the contract for An Post to provide services for the year ahead at the GPO on O’Connell Street in Dublin. David McRedmond, CEO of An Post signed on behalf of An Post. Last year’s contract amounted to €52 million for more than 35 million payments, and the value of the 2017 contract is expected to match that.

Minister Varadkar used the opportunity to re-affirm Government policy that all new claimants for pensions, Child Benefit and most other social welfare payments should be informed of the option to receive cash payments at their local post office.

The current terms between the Department of Social Protection and An Post were agreed in 2013 for an initial two year period, with an option to extend annually up to 2019.

Minister Varadkar said: “I’m very pleased to renew my Department’s contract with An Post to provide pension, Child Benefit and social welfare cash payments for the year ahead. This is an important service for our clients, many of whom value the opportunity to receive their payments in cash over the counter. An astonishing 35 million social welfare payments were made through post offices last year and that’s likely to be repeated in the year ahead.

“After I was appointed Minister for Social Protection I issued a directive to staff that clients making new claims, or seeking to change their payment arrangements, should always be informed as appropriate about the option to receive cash payments at their local post office, as well as by electronic fund transfer. This is in line with the Programme for a Partnership Government. It also recognises the key role that post offices play, particularly in rural areas.”

David McRedmond, CEO of An Post said: “An Post’s long-standing relationship with the Department of Social Protection has been an integral part of the services we provide to customers and communities all over Ireland. We look forward to continuing that work in the years to come.”

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