The House Committee on Poverty Alleviation has passed a bill aiming to protect Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries from financial service charges during payout withdrawals.
Under the proposed law, the Department of Social Welfare and Development (DSWD) will absorb all transaction fees imposed by banks and financial service providers to guarantee that low-income families receive their cash subsidies in full.
Committee chair and Pampanga 2nd District Representative Gloria Macapagal-Arroyo emphasized that the setup safeguards the viability of financial institutions while maximizing support for poor households.
“So, iyong mga bangko hindi malulugi, at saka iyong beneficiary magkakaroon ng ginhawa. That was the most important,” Arroyo, a former Philippine President said.
Funding for the absorbed fees will be factored into the annual 4Ps budget by the Department of Budget and Management (DBM) in upcoming fiscal years.
Social Welfare National Program Manager Mary Grace Oquindo-Pasibi projected that government spending would reach roughly ₱378 million annually if six withdrawals per year are covered, or up to ₱756 million if monthly withdrawal charges are covered.
To strictly enforce compliance, the bill imposes a ₱500 fine for every instance a financial provider improperly levies transaction fees on a 4Ps recipient.