§ Mr. CousinsTo ask the Secretary of State for Trade and Industry, pursuant to his answer to the hon. Member for Morecambe and Lunesdale (Miss Smith) of 12 February 2001,Official Report, column 20W, if 40W universal banking services will be registered as a bank or be subject to prudential regulation; if the Post Office card account will permit (a) phased withdrawals of benefits due and (b) the setting up of direct debits to councils and public utilities; and if the card account and universal banking services will have a single payment system manager. [150973]
§ Mr. Alan Johnson[holding answer 26 February 2001]: There is a lot of detailed work to be done to implement the concept of universal banking services between now and 2003 when it is due to come on stream. The project is at too early a stage in its development to he prescriptive about issues such as whether the Post Office will need to register as a bank; or whether there will be a single payment systems manager.
The intention is that the Post Office card account will permit phased withdrawal of benefits. With regard to the setting up of direct debits, users of the basic bank account element of universal banking services will be able to benefit from direct debit facilities, which will mean that gas and electricity bills are reduced. It is also the intention of the Post Office to provide a bill payment service alongside the card account, with the aim that such payments will attract discounts in a similar way to those offered to direct debit customers. Development of this is at an early stage.