Postmasters say 400 post offices could close if social welfare payments move to purely electronic system

Union says post office network has delivered excellent service to Department of Social Protection and its clients

Some 400 post offices could be put out of business if the Government moves social welfare payments to a purely electronic system, it has been warned.

Brian McGann, general secretary of the Irish Postmasters’ Union (IPU), claimed that forcing dole claimants to have money paid into accounts would decimate the traditional way of life.

Under a tender to be announced next month, the Government is to set out the need for a move to electronic payments and bypass the post office network’s traditional over-the-counter transactions.

Mr McGann said many people were sceptical about banks after the financial collapse that crippled the country.


“We are not against using modern financial transaction methods – they are in use in post offices daily – but we believe in consumer choice.

“People should be free to choose the post office if they want to receive their payments there.”

Stopping the over-the-counter payments could cost a postmaster €18,000 a year, 35 per cent of gross income, he said.

The IPU said that more than half of postmasters earn less than €50,000 a year.

“Some 400 offices could close. This would be devastating in social and economic terms for communities throughout the length and breadth of this country,” Mr McGann said.

“The post office retail network has delivered an excellent service to the Department of Social Protection and their clients for decades.”

Mr McGann said in many cases in rural and working-class urban areas the post office was the only outlet in the area that was offering a range of financial services.

“Social welfare clients are very loyal to their local post office and use it for a range of financial services that supports their needs.” – (PA)