§ Mr. AshdownTo ask the Secretary of State for Social Security (1) what estimate he has made of the savings to the Exchequer from the proposed payment of benefits into bank accounts rather than through post offices from 2003 onwards; what is the estimated saving in each year from 2003–04 to 2008–09; what assumptions about the amount of business which will be transferred from post offices to banks underlie these figures; and if he will make a statement; [104715]
(2) if he will make a statement on the timescale over which it is proposed to move towards paying benefits directly into bank accounts rather than through post offices; and if he will make a statement; [104750]
(3) if he will make it his policy to delay beyond the planned date of 2003 the proposed payment of benefits directly into bank accounts rather than through post offices; and if he will make a statement. [104714]
§ Mr. RookerWe have decided to change the way people are paid benefit, from the current paper based methods to automated credit transfer (ACT). This reflects the fact that customers increasingly choose to be paid this way. The move is expected to generate £640 million savings per year from 2005.
Those benefit recipients who wish to collect their benefit in cash at post offices will continue to be able to do so.
It is planned to move to ACT as the normal method of payment for all benefit customers. The move will begin in 2003 and end in 2005.