§ Mr. VazTo ask the Secretary of State for Social Security how many representations he has received from people concerned about Government plans to make pension and benefit payments directly to bank accounts: and if he will make a statement.
§ Miss WiddecombeWe have received various representations, including a number of letters from right hon. and hon. Members. The Government's policy is to ensure that people have a choice of payment method and are aware of the choices available.
§ Mr. BeggsTo ask the Secretary of State for Social Security (1) how many benefit or pension recipients(a) collect benefit directly from a post office and (b) have benefit paid directly into (i) a bank or (ii) a building society;
(2) how many claim forms have been issued to new pension or benefit applicants which do not provide information regarding the Post Office as a location from which allowances can be collected.
§ Miss WiddecombeThe payment of social security benefits is a matter for Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member and a copy will be placed in the Library.
Letter from Michael Bichard to Mr. Roy Beggs, dated 24 May 1993:
As Chief Executive of the Benefits Agency, it is my responsibility to answer questions about relevant operational matters. I am, therefore, replying to your recent Parliamentary Questions to the Secretary of State for Social Security asking how many benefit or pension recipients (a) collect benefit directly from a post office and (b) have benefit paid directly into (i) a bank or (ii) a building society; and how many claim forms have been issued to new pension or benefit applicants which do not provide information regarding the Post Office as a location from which allowances can be collected.
Although the number of beneficiaries for each benefit is known, because some individuals can receive more than one benefit, statistics on the total number of social security recipients are not available. However, at December 1992 around 4.3 m beneficiaries were paid directly into a bank or building society, while around 23.25 m were paid by a method of payment encashable at a post office. It is not possible to say, from our records, how many payments were made into bank accounts and how many into building society accounts.
In a recent trial, three versions of the Retirement Pension (RP) claim form were piloted. One version of the form did not refer directly to the Post Office as a location where RP may be collected, but it stated that other methods of payment were available and invited customers to request further information if required. Eight thousand copies of this form were issued. I hope you find this reply helpful. A copy will appear in the Official Report. A copy will also be placed in the Library.