Winter Fuel Payments (Hansard, 11 November 1998)

§ Angela Eagle

The administration of Winter Fuel Payments is a matter for Peter Mathison, Chief Executive of the Benefits Agency. He will write to the hon. Member.

Letter from Peter Mathison to Mr. Eric Pickles, dated 10 November 1998: The Secretary of State for Social Security has asked me to reply to your recent parliamentary question about how many cheques, and of what total value, have been returned by post and sub post offices as unclaimed by eligible pensioners for winter fuel payments. The making of Winter Fuel Payments to almost 10 million pensioners, in over seven million households, before the end of March 1998, was a challenging task for the Benefits Agency (BA). This was achieved whilst maintaining normal benefit business. During March this year, five million Winter Fuel Payment girocheques were sent to the Post Office for collection by those pensioners who receive a state retirement pension or widow's benefit and are paid by order book. Arrangements were made for the Post Office clerk to identify the relevant customers, as they called to collect their pension, hand them the envelope containing their girocheque, and a letter explaining the reason for the payment. Post Offices were instructed to return any uncollected girocheques to the nearest BA office on I May 1998. Approximately two percent of the total number of girocheques, with a value of either £10 or £20, were returned. The information on the total value of all payments returned is only available at disproportionate cost. It may be helpful if I explain the action that was taken on receipt of each undelivered payment. An investigation was undertaken to establish the reason why the payment had not been collected. Where it was confirmed that the pensioner was still alive a replacement payment was issued. Where the pensioner had recently died but nevertheless there was entitlement to a payment, the BA took action to pay the amount due to the next of kin or executor of the deceased's estate. About 98% of girocheques issued to the Post Office were collected. Of the remainder, around half were returned because there was no entitlement (for example, because the customer was abroad, in hospital for an extensive period, or had died). Many of the other girocheques were not collected because of short or medium term hospitalization or spells abroad, or customer's death during or after the qualifying week. In these cases, entitlement remained, and the girocheques have now been replaced except in a very small number of cases (for example, where further evidence is required). In making this year's Winter Fuel Payments, around the same number will be sent to the Post Office for delivery during January 1999. The Post Office have been asked to ensure all their staff are proactive in issuing the payments the first time the pensioner calls after the Post Office receive the pensioner's giro payment. The Winter Fuel Payment leaflet also advises pensioners whose payment has been sent to the Post Office to ask the clerk in the office they normally collect the payment from, if they have not been given their payment by the end of January 1999. I hope you find this reply helpful.