HC Deb 21 July 1994 vol 247 cc613-5W
Mr. Cousins

To ask the Secretary of State for Social Security what are the target savings for the current and three succeeding financial years to be achieved by a switch of existing and new claimants of child benefit to payment by credit transfer.

Mr. Burt

The administration of child benefit is a matter for Mr. Michael Bichard, the chief executive of the Benefits Agency. He will write to the hon. Member with such information as is available.

Child benefit
Year Estimated total administration cost1 Estimated average number of recipients in year Number of recipients paid at post office Number of recipients paid by automatic credit transfer
£m 000s 000s Per cent. 000s Per cent.
1989–90 111 6,735 5,772 85.7 963 14.3
1990–91 107 6,715 5,459 81.3 1,256 18.7
1991–92 118 6,760 5,408 80.0 1,352 20.0

Mr. Burt

The information for 1990–91 to 1991–92 is given in the table. All figures are estimates and subject to sampling error.

The information for 1979 to 1991–92 can be found on page 148 of "Households Below Average Income 1979 to 1991–92", a copy of which is in the Library.

Letter from Michael Bichard to Mr. Jim Cousins, dated 21 July 1994: The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question asking about the target savings for the current, and three succeeding financial years, to be achieved by a switch of existing and new claimants of child benefit to payment by credit transfer. Individual benefits were not set targets for savings to be achieved by transfer to automated credit transfer (ACT). Targets were set in terms of the percentage increase in ACT take-up to be achieved by 1995–96 and for Child Benefit this was 3 per cent. ACT take-up was 23–9 per cent. of existing Child Benefit cases and 41.8 per cent. of new claims as at May 1994. I hope you find this reply.

Mr. Cousins

To ask the Secretary of State for Social Security if he will publish tables showing the administrative costs of administering child benefit in each of the past five years with an estimate for the current year; if he will set out the administration costs represented by payments to(a) the Post Office and (b) financial institutions for passing over the benefit; what was the total number of recipients each year; and how many recipients received child benefit through (i) post offices and (ii) other financial institutions by credit transfer.

Mr. Burt

The available information is in the table. The estimated total administration costs for 1993–94 and 1994–95 are not yet available. Costs for 1993–94 will be published in the 1995 departmental report and those for 1994–95 will be published in the 1996 departmental report.

The information relating to payments made to the Post Office and other financial institutions is commercial-in-confidence.

Year Estimated total administration cost1 Estimated average number of recipients in year Number of recipients paid at post office Number of recipients paid by automatic credit transfer
£m 000s 000s Per cent. 000s Per cent.
1992–93 136 6,897 5,435 78.8 1,462 21.2
1993–94 n/a 6,948 5,392 77.6 1,556 22.4
1994–95 n/a 7,048 5,371 76.2 1,677 23.8
1 Source departmental reports 1991–94