§ Dr. CableTo ask the Secretary of State for Social Security what proportion of benefits claimants receive benefits by(a) cash payment through the Post Office and (b) direct credit transfer; and what amount of benefit fraud arises from (i) cash payments and (ii) direct credit transfer. [95176]
§ Mr. RookerAs at August 1999, about 65 per cent. of all benefit recipients were receiving payment in cash by order book or girocheque at the Post Office. Thirty-four per cent. were receiving payment by direct credit transfer and 1 per cent. by other methods of payment into banks (these include payable orders and the small proportion of girocheques paid into bank accounts).
It is estimated that fraudulent losses during 1998–99 from cash payments were £19 million in respect of girocheques and £83 million in respect of order books. No fraud has been detected to date directly arising from payment by direct credit transfer.