HL Deb 02 July 1985 vol 465 cc1043-4

2.49 p.m.

Lord Gainford

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what arrangements are being made for recipients of social security benefit to take advantage of credit transfer facilities into a bank or building society instead of being paid by the traditional method at a post office.

The Earl of Caithness

My Lords, retirement pension, widow's pension, child benefit, mobility allowance, attendance allowance and war pension can now be paid by credit transfer. The exercises to invite existing beneficiaries to change their method of payment are not yet complete, but new claimants can choose payment by credit transfer from the outset if they so wish.

Lord Gainford

My Lords, I thank my noble friend the Minister for that Answer. Does he have any information about particular banks—I believe that the National Westminister Bank is one of them—which are offering certain facilities free of charge to pensioners and retired persons?

The Earl of Caithness

My Lords, I wish they would extend free facilities to all of us; I think it would be beneficial! Such concessions are of course a matter for individual banks, but this is a good example of the free market, where pensioners can move to the bank offering the best services available.

Lord Taylor of Blackburn

My Lords, is the noble Earl the Minister aware that the Co-operative Bank is offering the same facility?

The Earl of Caithness

I am delighted to hear it, my Lords.

Viscount St. Davids

My Lords, can the Minister tell me whether such payments are usually made weekly, in the same way as they normally are made, over the counter, to pensioners, or are only paid monthly or fortnightly? If they are paid at longer intervals than weekly, then this in fact means a loss to pensioners.

The Earl of Caithness

My Lords, I cannot agree with the noble Viscount that there is any loss to pensioners. Some are paid weekly and some four-weekly, and some are paid every 13 weeks, regardless of whether that is done by automated credit transfer or by pension book.

Lord Airedale

My Lords, is there not a delicate balance to be struck here between, on the one hand, giving the sub-post offices enough work to enable them to remain open and, on the other hand, avoiding the necessity for elderly people having to stand in long queues every Thursday morning, or whichever day it is, in order to collect their pensions?

The Earl of Caithness

My Lords, the noble Lord, Lord Airedale, has put his finger on a very good point indeed. The Government are aware of the importance of the post office network.