HC Deb 07 February 2000 vol 344 cc58-9W
Mr. Crausby

To ask the Secretary of State for Social Security (1) if he will make it his policy to ensure that recipients who collect their benefits on a weekly basis will be able to continue to do so when Automated Credit Transfer is introduced in 2003; [108418]

(2) what recent representations he has received on the decision to pay benefits through Automated Credit Transfer. [108416]

Mr. Rooker

This is one of a number of issues to be considered on the move to payments by Automated Credit Transfer. No decisions have yet been taken, but we will ensure that the new arrangements from 2003 continue to meet people's needs.

On recent representations, I refer my hon. Friend to the written answer I gave the right hon. Member for Yeovil (Mr. Ashdown) on 28 January 2000, Official Report, column 372W.

Mr. Cotter

To ask the Secretary of State for Social Security (1) what steps he has taken to ensure the accuracy of benefits payments made through the automated credit transfer system; and if he will make a statement; [107963]

(2) what is the total amount by which benefits have been (a) overpaid and (b) underpaid in error using the automated credit transfer system in the last full year for which records are available; [108056]

(3) what is the annual administrative cost of making benefit payments through the automated credit transfer system; and what proportion of that cost relates to the administrative cost of correcting payments made in error; [107962]

(4) how many people were (a) overpaid and (b) underpaid benefits in error by his Department using the automated credit transfer system in the last full year for which records are available. [107964]

Angela Eagle

[holding answer 2 February 2000]: The administrative cost of making benefit payments through automated credit transfer (ACT) is a small fraction of the cost of other methods. For example, it costs 49p every time an order book foil is presented, and 79p per giro cashed, against 1p for each ACT payment. We expect savings in administrative costs of £400 million a year when ACT becomes the norm.

Under and over-payment of benefit may occur for a number of reasons. I am aware of only one occasion (involving nearly 112,000 customers being overpaid a total of about £10.5 million) where the ACT process itself has been the cause of under or over-payment. The Benefits Agency is taking urgent steps to recover the money and to ensure it does not happen again.