HC Deb 06 May 1998 vol 311 c428W
Mr. Rendel

To ask the Secretary of State for Social Security (1) if she will list the benefits to be paid through the operation of smartcards; [41012]

(2) when she expects ICL to complete installation of the central computer system to all post offices to allow use of the plastic smartcards for the payment of benefits; [41013]

(3) which computer services companies other than ICL have approached her Department; and which computer services companies other than ICL her Department has approached to install computer systems to allow payment of benefits through smartcards at post offices; [41014]

(4) how many post offices have had the central computer system installed to allow operation of smartcards for benefit payments. [41015]

Mr. Field

The Payment Card is a magnetic stripe card and not a smart card. It holds very little personal data and provides a key to enable the post office staff to access the payment data. It is therefore highly secure. All benefits, pensions and allowances administered by this Department and its agencies will be payable by the Payment Card for those customers who wish to collect their money at the post office.

The contract to automate post offices and develop a benefit Payment Card was awarded to ICL Pathway in May 1996 following an extensive competitive procurement in accordance with EC regulations and Government good practice. Since the award of the contract no other major computer services company has approached the Department to install the computer systems to enable the payment of benefits at post offices. Neither has the Department approached any computer services company to install computer systems to enable the payment of benefits at post offices.

Presently 205 post offices in the North East and South West of England have been automated and are paying Child Benefit by Payment Card as part of a limited trial. Current plans provide for all post offices to be automated and ready to use the Payment Card by the end of 2000.