The Department of Social, Community and Family Affairs will spend an estimated £6 million (7.62 million) extra in social welfare payments in order to facilitate the changeover to the euro currency.

However, social welfare recipients should not expect to receive any real increase in their individual payments, as the extra £6 million will only work out at up to 10 cents per person. The increase will take into account the plan to adjust payments upwards to the nearest 10 cents when they are converted to euros from January 1st next year.

The Government has said that any changes in payments as a result of the changeover will be made "in favour of the customer", but a spokeswoman for the Department said that the extra cost of rounding off euro payments would be subsumed into the cost of budgetary increases that will be announced in December.

Among Government departments, the logistical challenge facing the Department of Social, Community and Family Affairs is rivalled only by that of the Revenue Commissioners.

The Department spent £370,000 last year on its changeover project and will spend a further £1.2 million this year. Each of the various social welfare payments made to the 1.4 million individuals and families during the year will be affected.

January 2nd, 2002, is likely to be a tense day for the Department, particularly as concerns have been expressed about possible delays in social welfare payments, primarily because of the decision by the Minister for Finance, Mr McCreevy, to align the tax and calendar year from January 2002. Any social welfare increases would come into effect at the same time as changes in the income tax provisions announced in the next Budget.

However, the spokeswoman for the Department said the euro changeover was not expected to add to these delays.

Those who may be sceptical about the Department's accuracy in calculating their social welfare payments are likely to be scrutinising their converted payments closely for any signs of mistakes or miscalculations.

Like all Government departments, the Department of Social, Community and Family Affairs subscribes to the national changeover code, which mandates that any conversion be made "in favour of the customer". So even if changeover increases are "subsumed" to some extent by budgetary increases for next year, customers should not be losing out in any way.

In terms of raising awareness among its customers, the Department is conducting a number of initiatives including a leaflet outlining the impact on payments of the euro changeover. However, recipients will not be informed of the final rates of their social welfare payments until the next Budget.

At that stage, a euro helpline will be set up, which will answer customer questions until February 9th, along with extensive advertising on both the Budget changes and the euro.