§ Dr. CableTo ask the Secretary of State for Social Security (1) what assessment he has made of the effectiveness of using the LINK electronic banking network for the distribution of social security benefits to recipients who do not possess a bank account; [143580]
(2) what discussions he has had with interested organisations and representative groups about the payment of social security benefits to recipients who are unlikely to have any form of bank account after the proposed change to the ACT system from 2003. [143587]
§ Mr. RookerWhen, in 2003, we move to paying benefits directly into bank accounts by Automated Credit Transfer (ACT), we recognise that there will be some people who will be unable to be paid by this method. For these, we are considering what alternative simple electronic money transmission system, which could be accessed at post offices, may be commercially available.
We have had a number of approaches from organisations that are interested in providing this alternative payment system and have listened to their proposals on a commercial in confidence basis. No decisions have been made or agreements reached.
As part of routine liaison with representative groups the Department has discussed a range of issues including how to pay those benefit recipients who are unable to be paid by ACT.