§ Mr. Brothertonasked the Secretary of State for Social Services (1) if it is the case that uncrossed Giro cheques are sent to claimants;
(2) if he will require all claimants in receipt of social security payments to open bank or Post Office Giro accounts before Giro cheques are sent to them.
(3) in which year Giro cheques were introduced by his Department for the payment of social security benefits; and what was the method of payment before that.
§ Mr. OrmeSocial security benefits have been paid by Giro cheques since the introduction of the Giro service in 1969; prior to that, payment was made in cash or by postal drafts which were also cashable at post offices. There is a limit of £50 on the value of uncrossed Giro cheques issued by the Department. It would not be practicable or convenient to the vast majority of claimants to require them to open bank or Giro accounts before being able to receive benefit.
§ Mr. Brothertonasked the Secretary of State for Social Services (1) if it is the case that some 50,000 Giro cheques issued by his Department's offices go missing each year;
(2) what proportion of missing Giro cheques issued by offices of his Department is fraudulently cashed;
(3) if it is the case that where Giro cheques are sent to claimants but go missing and are fraudulently cashed, the Department sends a second cheque to the claimant.
§ Mr. OrmeI refer the hon. Member to my replies to the hon. Member for Southampton, Test (Mr. Gould) on 20th October 1976—[Vol. 917, c.482]—and to the hon. Member for Aberdeen, South (Mr. Sproat) on 11th November 1976—[Vol. 919, c. 219–20.] The only cases in which a second Giro cheque is issued when the first has been fraudulently cashed and those where, after full investigation, the Department is satisfied that the beneficiary to whom the payment was properly due, or a member of his family or household, has not received and, or cashed the Giro cheque.
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§ Mr. Brothertonasked the Secretary of State for Social Services if he will require all claimants who have previously been posted uncrossed Giro cheques to apply for them in person at his Department's offices or to appoint a representative to collect them on their behalf.
§ Mr. OrmeI assume the hon. Member makes this suggestion in relation to claimants who have reported the loss of a Giro cheque posted to them. In such cases, and indeed where a Giro cheque may otherwise have to be sent to a vulnerable address or area, a claimant may be asked to collect his Giro cheque in person at the local office.