§ Ms Janet AndersonTo ask the Secretary of State for Social Security (1) what has been the cost, for each year since 1987, of seeking to persuade recipients of benefits, pensions and other allowances to switch to payment by automated credit transfer;
(2) what would be the saving to his Department for each category of benefit, pension or other allowance if all recipients in each category were to switch to payment by automated credit transfer;
(3) how many people draw benefits, pensions or other allowances in cash weekly at (a) main post offices and (b) sub-post offices;
(4) if he will list, for each category of benefit, pension or other allowance, the percentage, and actual number of
Estimate of number of recipients by method of payment (at December 1992) Number (millions) and percentage of beneficiaries paid by: Benefit Four weekly orderbook Fortnightly girocheque Weekly orderbook millions per cent. millions per cent. millions per cent. Retirement pension n/a n/a 6.5 70 Child benefit 2.25 33 n/a 3.0 45 Income support n/a n/a 3.5 100 Unemployment benefit (including income support cases paid by Employment Services) n/a 2.8 100 n/a Invalidity benefit n/a n/a 1.8 100 Note: There are some circumstances when payment may be made by weekly girocheque for limited periods—these have been excluded from the table.
§ Mr. SpellarTo ask the Secretary of State for Social Security at what intervals benefits on credit transfer are paid; and whether these are in advance or arrears.
§ Miss WiddecombePeople who choose to have their retirement pension, widowed mother's allowance, widows benefit or widows pension paid by automated credit transfer also have a choice of receiving their benefit every four or 13 weeks, paid in arrears. War pensions are also payable either 13 or four-weekly, and if the latter three weeks are in arrears and one in advance. Child benefit, family credit, disability living allowance, disability working allowance and attendance allowance paid by automated credit transfer are paid four-weekly in arrears.
312Wrecipients who are paid by automated credit transfer, the percentage and actual number of recipients who are paid by Giro, and the percentage and actual number of recipients who are paid in cash weekly at post offices;
(5) what proposals he has to seek to persuade recipients of benefits, pensions or other allowances to switch to payment by automated credit transfer; and if he will make a statement.
§ Miss WiddecombeDetails of the precise number of beneficiaries paid by particular methods of payment are not available. However, the estimated totals for the number of recipients for the main benefits receiving payment other than by automated credit transfer are shown in the table. The number of recipients who are paid at the post office includes all those beneficiaries paid by order book, but Girocheques may of course be cashed either at the post office or through a bank or building society account.
It is estimated that 20 million social security beneficiaries use sub-post offices and 4 million use main post offices.
Information is not available which allows a costing on a benefit basis of the savings that would be made if all beneficiaries were paid by ACT, but the total estimated administration savings from converting all payments of social security benefits to ACT is about £475 million a year.
The estimated costs of the actions taken to encourage beneficiaries to switch to payment by ACT were £535,000 in 1987–1988; £1,500,000 in 1988–1989; and £4,000 in 1990–91. No costs were incurred in the years 1989–1990, 1991–1992 and 1992–1993. During the next year, we will be making changes to form design and to leaflets, and to other information available from the Benefits Agency. These will be introduced gradually and after the appropriate research and piloting.