§ Mr. WebbTo ask the Secretary of State for Social Security (1) if he will list the principal activities of his Department and its agencies which provide business for(a) Crown post offices and (b) other post offices; if he will assess whether the level of business generated in each 239W case is likely to increase or decrease over the next five years; and which new areas of business for post offices are likely to be developed by his Department and its agencies over the same period; [99555]
(2) what the policy of the Benefits Agency is on encouraging the replacement of benefit payments to post offices by automated credit transfers prior to 2003. [99564]
§ Mr. RookerOur principal activity, which provides business for Post Office Counters Ltd. (POCL), is the encashment of pensions and allowances (together with supporting administration and accounting functions). This activity is fully available in both Crown and other post offices.
Current trends indicate a decline in this activity between now and 2003. This is due to the reduction in the number of people generally depending on benefit and the steady growth in customer preference for payment direct to bank accounts. From 2003 ACT will become the normal way of paying benefits and, as a result, the rate of decline in current order book and girocheque activity on behalf of the Department will accelerate.
It is envisaged that the migration of benefit recipients from paper based methods of payment to more efficient and secure payment direct to bank accounts will take place over a two year period from 2003 to 2005. Between now and 2003 the Department will work with POCL to ensure that a wide range of banking services are available over post office counters.
Officials from the Department have already met with representatives from the Post Office to discuss the mutual development of strategies which will ensure that benefit recipients continue to have access to cash at post office counters.
Currently order book and girocheque pay 65 per cent. of all benefit customers.