§ Mr. Nigel GriffithsTo ask the Chancellor of the Exchequer if he will act to limit the commission charged by organisations that cash housing benefit cheques for claimants. [37172]
§ Mrs. Angela KnightHousing benefit claimants do not need to use cheque encashment centres. Local authorities—who are responsible for the payment of this benefit—have powers to make alternative arrangements to ensure that claimants who do not have bank accounts receive its full value. For example, payment can be made by Girocheque which can be cashed at a post office., local authorities can use their own cash offices to cash cheques; or benefit can be paid direct to the landlord.
§ Mr. GriffithsTo ask the Chancellor of the Exchequer if he will review the procedures for cashing cheques by organisations which are not banks. [37170]
§ Mrs. KnightThese are matters for the cheque cashing centres and the banks who offer them cheque clearing facilities.
§ Mr. GriffithsTo ask the Chancellor of the Exchequer if he will investigate organisations which cash cheques for housing benefit claimants and make recommendations to tackle fraud and abuses. [37171]
§ Mrs. KnightLocal authorities are responsible for the payment of housing benefits. Those which are concerned about organisations which cash cheques for housing benefit claimants have powers to make alternative arrangements to ensure that claimants without bank accounts receive the full value of their benefit by other means. For example, payment can be made by Girocheque which can be cashed at a post office; local authorities can use their own cash offices to cash cheques; or benefits can be paid direct to the landlord.
The clearing bank which offers facilities to a cheque cashing firm is liable should any problems occur with a cheque not paid directly to the named payee.