§ Dawn Primarolo
The principal reasons for restricting the options for the method of repayment were to improve the level of service given to customers, to improve efficiency around the repayment process, and to improve the security of the payment.
By making a repayment electronically direct to a bank or building society account, the customer is able to have earlier use of the money than if a cheque had been sent through the post. An electronic repayment also has lower processing cost both for the Inland Revenue and the banking sector; and reduces the risk of the payment being intercepted.
But if the customer is unable to accept the repayment electronically, a cheque can be issued.