HC Deb 21 January 2002 vol 378 cc630-1W
Mr. Willetts

To ask the Secretary of State for Work and Pensions what percentage of benefit recipients have received their benefits by automated credit transfer in each year since ACT was introduced. [24240]

Malcolm Wicks

Comprehensive statistics on customers paid by Automated Credit Transfer (ACT) date back to 1993. The table reflects the average take up across all benefits apart from job seekers allowance (JSA) as take-up data are not currently available.

Year Percentage of benefit recipients receiving their benefit by ACT
1993 18.5
1994 23.5
1995 24.0
19961 28.0
1997 30.5
19982 33.0
1999 36.0
20003 38.0
2001(August) 40.0
1 Includes IIDB from June 1996
2 Includes ICA from June 1998
3 Includes guardians allowance from June 2000
Mr. Clappison

To ask the Secretary of State for Work and Pensions what his estimate is of the costs that the Government will incur in servicing Post Office card accounts for(a) 3 million, (b) 4 million, (c) 5 million and (d) 6 million benefit claimants. [28940]

Malcolm Wicks

This will depend on the outcome of contractual negotiations between the Government and the Post Office, which will remain commercially in confidence between the parties.

Mr. Clappison

To ask the Secretary of State for Work and Pensions what research his Department has carried out into the numbers of benefit claimants who already have a bank account; and if he has estimated how many of these claimants will choose to transfer to a Post Office card account when they start to be paid by ACT. [28941]

Malcolm Wicks

Around 85 per cent. of benefit claimants have an account into which they can be paid directly. In general, we expect that they will choose to use these accounts when moving to payment by ACT.

Mr. Clappison

To ask the Secretary of State for Work and Pensions on what information the Government based its assumption that around 3 million benefit and tax credit recipients will open a Post Office card account and what provision is being made available should this figure rise following the introduction of the Universal Bank. [28942]

Malcolm Wicks

Our assumption was derived from the number of benefit and tax credit recipients without bank accounts, recognising that some of these customers will open basic accounts with a high street bank. The commercial arrangements between the Government and the Post Office will provide for the possibility that the actual number of Post Office card accounts may be higher or lower than our 3 million operational assumption.

Mr. Clappison

To ask the Secretary of State for Work and Pensions what recent discussions he has had with the Post Office about the provision of the Post Office card account; what the outcome of these discussions was; and if he will make a statement. [28943]

Malcolm Wicks

Officials, together with officials from the Inland Revenue and the Northern Ireland Social Security Agency, have had extensive discussions with the Post Office. These are still continuing.