Mr. Jim Callaghanasked the Secretary of State for Social Services (1) with whom, in addition to his discussion with the Inter-Bank Research Organisation, he has consulted about the methods which his Department uses to pay pensions directly into bank accounts;
(2) whether, and, if so, when, he expects to remove the difference whereby a public service pensioner can have his occupational but not his national retirement pension paid by the Government directly into his bank or Giro account.
§ Mr. Deakins,pursuant to his reply [Official Report, 17th June 1977; Vol. 933, c. 306], gave the following information:
Payment of retirement pension is at present made direct to a bank account only where the pensioner is abroad and either his absence is temporary or a substantial payment of arrears has to be made. Only about 3,500 pensions are being paid in this way at any one time, and the payment is made to the pensioner's bank manager as agent for him. About 10,000 war pensions are also paid direct into a bank account at the pensioner's request. These administrative arrangements have not been the subject of consultation with outside bodies.
Discussions on the possibility of a substantial extension of the use of direct payments, so that they become in due course an option which is available to any pensioner, have, however, been held with the Inter-Bank Research Organisation, following correspondence with the Committee of London Clearing Bankers. At an appropriate stage wider consultations will 381W be held with other relevant banking interests. It will of necessity take some time before such a system could become operational.