§ Mrs. MayTo ask the Secretary of State for Social Security if she will make a statement on the launch of the project to introduce magnetic stripe cards for the payment of benefit; and what are(a) the revised launch date, (b) the timetable for installing the system in post offices, (c) the reasons why chip cards were not included in the project and (d) the anticipated reduction of fraud as a result of the project. [37760]
§ Mr. DenhamThe Benefit Payment Card has already been launched and is in use for Child Benefit customers as part of a trial in 205 post offices in the South West and North East of England.
On current plans we expect to begin automating the rest of the Post Offices network next year and all Post Offices should be automated by the end of 2000.
The magnetic stripe card fully meets the requirements for the Payment Card that were set out for prospective contractors for this Private Finance Initiative project. However, the system is fully able to support smart card technology.
Once fully operational, the Payment Card is expected to virtually eliminate fraud at the point of encashment.