§ Mr. SpringTo ask the Secretary of State for Social Security if he intends to review the income support direct payments scheme for fuel and water. [39007]
§ Mr. LilleyI have asked my officials to consider with the regulators the fuel and water companies and with appropriate consumer bodies the scope for improving the efficiency and effectiveness of the direct payments scheme.
The scheme was introduced for fuel in 1976 and for water in 1991 as a last resort measure to help prevent disconnections. The number of direct payment deductions has steadily increased, from around 100,000 in the late 1970s to over half a million now, yet in recent years, although water prices have increased, fuel prices have fallen or remained stable. There have been significant improvements to the range and quality of payment schemes provided by all the utility companies and there has been a vast reduction in the number of disconnections. Technological advances, such as the benefit payment card due to be launched later this year, create new opportunities for providing alternative methods of payment for customers. I believe it is time to review the operation of the scheme to ensure that, in protecting the supply of fuel and water for people receiving income support, the right balance is struck between the companies' own payment and collection schemes, the responsibility of the individual, and the role of the state.
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