§ Mr. Tim SmithTo ask the Secretary of State for Social Security how may social security beneficiaries are paid(a) weekly in cash at post offices, (b) four-weekly by bank giro credit and (c) three-monthly by bank giro credit.
§ Mr. Peter LloydThe main benefits for which the option of payment by automated credit transfer is available are retirement pension and child benefit. The latest figures available are:
Number Retirement pension (a) Order book 6,730,961 (b) Four weekly ACT 1,461,891 (c) 13 weekly ACT 69,396 Child benefit (a) Order book—weekly 3,466,604 —four weekly 2,195,481 (b) Four weekly ACT 1,051,290 (c) 13 weekly ACT is not available
§ Mr. Tim SmithTo ask the Secretary of State for Social Security what is his estimate of the cost of paying social security beneficiaries paid four-weekly by bank giro credit in the middle of the four-week period rather than at the end of it.
§ Mr. Peter LloydThere would be additional benefit costs, estimated at £177 million, in the first year due to the advancing of payments and a continuing cost due to loss of interest to the national insurance fund and consolidated fund, which based on current case loads and average payments and assuming an interest rate of 10 per cent. per annum would be about £18 million per year.
§ Mr. Tim SmithTo ask the Secretary of State for Social Security what administrative savings arise from paying social security beneficiaries by bank giro credit rather than in cash at post offices.
§ Mr. Peter LloydBased on current case loads and costs the administrative savings are estimated to be of the order of £25 million a year.