§ Lord Aveburyasked Her Majesty's Government:
What services are to be provided for benefit claimants through the computerisation of the Post Office network; whether it is intended to pay benefits directly into the claimant's bank account wherever possible; what is the proportion of claimants who now receive benefits by direct transfer; and what is the amount of benefit fraud arising from direct transfer and cash payment of benefits respectively. [HL2772]
64WA
§ The Parliamentary Under-Secretary of State, Department of Social Security (Baroness Hollis of Heigham)As announced on 24 May 1999, the project to automate post offices will continue but will no longer include the introduction of the benefit payment card. It is intended however to continue with the introduction of the Order Book Control Service, which uses bar coding on order books to tackle benefit fraud.
As now, customers will he able to opt for order books and girocheques to collect their benefit at the post office or for automated credit transfer to have their money paid into a bank account. The Benefits Agency will begin replacing order books and girocheques in 2003 with a more modern, efficient and secure way of paying benefits using the existing automated credit transfer system. The Post Office intends to develop further its commercial arrangements with high street banks so that those people who wish to receive their benefits at post offices should continue to be able to do so.
As at May 1999 a third of all benefit recipients choose to be paid by automated credit transfer (ACT). ACT. as a means of payment, does not give rise to fraud in the same way as girocheques or order books, which can be stolen, forged or altered.