Post Office Card Accounts (Hansard, 3 December 2002)

§ Mr. Andrew Smith

The Department for Work and Pensions will be converting people to direct payment over a two-year period, with the first payments going into accounts in April 2003. An information campaign will support the conversion.

Informing people about the availability of the Post Office card account is part of this campaign rather than a separate advertising initiative. We need to ensure that people are aware of the range of options open to them, and in a position to choose what is appropriate and convenient for them. Our information campaign will take customers through the changes, including getting their money from their account at the Post Office and the availability of the Post Office card account.

There will be two main elements to our campaign. Customers will be supplied directly with information, which clearly sets out their "account options" and enables them to decide which account is right for them. Customers do not need to take any action until they receive a letter about the change. Until then they can keep their order book or giro.

In addition, we plan to make more general information available and also undertake some advertising. This activity will be timed to coincide with the build up of the number of people transferring to direct payment into accounts. Again, this activity will include reference to all of the "account options" including the Post Office card account.

The Government and Post Office Limited are working together to ensure that front-line Post Office staff have all the information they need to answer any questions from customers about banking facilities in Post Office branches.

The first invitation letters asking for account details started to go out to some Child Benefit customers at the end of October, other customers will be contacted in due course. The Veterans Agency started writing to its customers in early October.

The Post Office plan to have their card account service available from April 2003. The banks' own basic bank accounts are scheduled to become available through Post Office branches at the same time.

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Since many people will rely on the card account to collect their benefit, pension or tax credit, it is essential that the systems supporting the card account are reliable and robust. The Post Office are carrying out extensive testing of systems, and also intend to undertake some piloting work in advance of April 2003.

In line with good practice, and in order to minimise risk, the intention is gradually to build up (starting from April 2003) the number of benefit customers and pensioners that we pay through the Post Office card account. As the system proves itself in live running, we will increase the number of people paid through the card account. And, at an appropriate time, those new tax credit customers who have asked for a Post Office card account will start to have their payment made in this way. In the intervening period, Tax Credit customers opting for a card account will be paid by giro and DWP customers by order book or giro as appropriate.