Universal Banking Services (Hansard, 13 March 2001)

§ Mr. Page
To ask the Secretary of State for Trade and Industry what calculation has been made of the cost of the introduction of a magnetic card for the payment of benefits and pensions from sub-post offices. [R] [153604]

§ Mr. Alan Johnson
It is too early to say what the setting up and running costs of the Post Office Card Account element of Universal Banking Services will be.

§ Mr. Page
To ask the Secretary of State for Trade and Industry what payment per transaction will be made to sub-post offices for payments of benefit and pensions by a magnetic card. [R] [153599]

§ Mr. Alan Johnson
The development of Universal Banking Services are at an early stage (they are not due to come on stream until 2003). Payment arrangements will be subject detailed to contractual negotiations between the Government and the Post Office.

§ Mr. Page
To ask the Secretary of State for Trade and Industry what his estimate is of the reduction of fraud through the introduction of a magnetic card for the payment of benefits and pensions. [R] [153602]

§ Mr. Alan Johnson
By making payments directly into bank accounts, the Government expect to achieve savings of around £100 million in current Instrument of Payment fraud.

§ Mr. Page
To ask the Secretary of State for Trade and Industry what incentives the Government will give to individuals to encourage the utilisation of Universal Banking Services by benefit and pension recipients; and what is their cost. [R] [153600]

§ Mr. Alan Johnson
It is the Government's intention to identify and deploy effective incentives to encourage the utilisation of Universal Banking Services by benefit and pension recipients. The concept of Universal Banking Services are at an early stage (they are not due to come on stream until 2003) and a lot of detailed work will be necessary before decisions can be taken on what form that incentives structure might take.

§ Mr. Page
To ask the Secretary of State for Trade and Industry if he will make a statement on progress in the discussions with the banking sector on the creation of the Universal Banking Services. [R] [153601]

§ Mr. Alan Johnson
Discussions with the banks are at an advanced stage. I hope that they will be resolved shortly.

§ Mr. Page
To ask the Secretary of State for Trade and Industry what his Department's estimate is of the annual running cost of the Universal Banking Services and the percentage division of this cost between Government and the banking sector. [R] [153603]

§ Mr. Alan Johnson
It is too early to say what the setting up and running costs of the Post Office Card Account element of Universal Banking Services will be; or what might be the percentage division of costs between the Government and the banking sector. The banks have agreed in principle to make a contribution but the precise figures are subject to commercial negotiations which we expect to be resolved shortly.