§ Mrs. BeckettTo ask the Secretary of State for Social Security whether he will increase the £250 limit on benefit payments made by uncrossed girocheque, in view of the increases in benefit rates since it was fixed at that level and the difficulties it can cause to claimants who have no bank accounts.
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§ Mr. Peter LloydThe level at which girocheques are to be crossed is determined by Girobank in conjunction with the Post Office and the Department. The level is subject to regular review when account is taken of(a) the number of payments of benefit above the uncrossed level and (b) the need to protect both the beneficiary and the Department from fraudulent encashment of large amounts.
The current level was introduced in 1986 and was reviewed in 1987 at which time there was no evidence to support an increase in the uncrossed level. A further review will take place shortly. Claimants who do not have a bank account are advised that a relative, friend, employer or tradesman may help to cash a girocheque or, if difficulty continues, to contact the local social security office to arrange for payment to be split into two, or more, uncrossed girocheques.