§ Mr. RooneyTo ask the Secretary of State for Social Security if the payment of benefit by automatic credit transfers involves the notification of the claimant's national insurance number to the receiving bank. [126542]
§ Mr. RookerThe administration of benefit payments is a matter for Alexis Cleveland the Chief Executive of the Benefits Agency. She will write to my hon. Friend.
Letter from Alexis Cleveland to Mr. Terry Rooney, dated 19 June 2000:
The Secretary of State for Social Security has asked me to reply to your Parliamentary Question asking if the payment of benefit by automated credit transfer (ACT) involves the notification of the claimant's National Insurance number to the receiving bank.
Payments made by ACT are made through BACS (the UK's major automated clearing house). For BACS to accept a payment file completion of a number of identification fields is mandatory, for example bank/building society account number, sort code and amount.
Another mandatory requirement is for the inclusion of a payment reference. The inclusion of a reference allows each benefit system to track and trace individual payments, facilitating action such as recalling a payment and responding to customer enquiries.
All benefits use the customers' National Insurance number as a payment reference, with the exception of Child Benefit for which the Child Benefit number is used.
This reference is passed over to the receiving bank with all other payment details.
I hope this is helpful.