From Department of Social Protection
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An Post has been selected as the preferred bidder for the Department of Employment Affairs and Social Protection’s new cash payment services contract.
Contract discussions are ongoing between the two bodies and are due to be completed shortly. The new contract – worth circa €100m – will run for two years, from 1 st January 2020 to 31st December 2021.
The Department of Employment Affairs and Social Protection’s cash welfare payments are currently governed by the Department’s Cash Services Contract, also with An Post. This contract came into effect on 1 January 2014 and is due to expire on 31 December 2019. The Department was required by EU and national procurement rules to publicly tender for the provision of a new cash payment services contract from the start of next year.
After the two year contract period is complete, the Department has the option to renew the contract on an annual basis for a further four years.
Minister Doherty said:
"In 2018, almost 31 million payments – or 40% of all payments by the Department - were paid in cash through An Post’s network of post offices reaching into local communities throughout the entire country. Once the new contract is signed, the arrangements currently in place will remain unchanged for everyone who has chosen to receive their welfare payment through An Post."
Debbie Byrne MD of An Post Retails said:
"An Post welcomes the certainty provided by the latest announcement which will come as good news to Postmasters and our customers. Cash payments to the Department’s clients, which include pensions and Child Benefit, are an important element of the business of post offices and a clear example of the value of the post office network in delivering government services to local communities. We look forward to working with the Department of Employment Affairs and Social Protection over the next two years."
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