§ Mr.Liddell-GraingerTo ask the Secretary of State for Work and Pensions (1) what steps are being taken to help pensioners in rural areas without banks adjust to the move to benefits being paid to banks and building societies; [76949]
(2) how pensioners in rural areas without bank or building society accounts will be able to access pensions in January 2003. [77091]
§ Malcolm WicksAround 90 per cent of pensioners already have access to a suitable bank account.
The Post Office currently have arrangements with a number of banks to allow customers to access their accounts at Post Office branches. This has already enabled banking to return to those rural areas, which have not had bank branches for some years.
These arrangements will be complemented with the introduction of universal banking services. This will help ensure that benefit and pension customers, who wish to do so, can continue to access their benefits in cash at the Post Office. Universal banking services will consist of two elements: access to basic bank accounts and the Post Office card account. This means that those people who want to open an account should be able to do so, including those in rural areas who might not previously have had access to banking facilities.
Our information campaign will take customers through the changes, including getting their money from their account at the Post Office. Customers will be supplied with information, which clearly sets out their "account options" and enables them to decide which account is right for them. The changes in how benefits are paid will be phased in over a two-year period. 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.
Although we will start to contact some pensioners in January to prepare for the change, no-one will need to change their method of payment until April at the earliest.
§ Vera BairdTo ask the Secretary of State for Work and Pensions how many families will lose entitlement to(a) income support and (b) income-based jobseeker's allowance as a result of the introduction of child tax credit; and what estimate he has made of the average income of those families affected. [77273]
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§ Malcolm WicksAll families who move from Income Support or Jobseeker's Allowance to Child Tax Credit only will be entitled to the maximum amount of Child Tax Credit up to an annual household income of £13,230. These families can therefore gain considerably from the introduction of the Child Tax Credit.
§ John ThursoTo ask the Secretary of State for Work and Pensions pursuant to his answer of 15 October 2002,Official Report, c. 634–35W, on benefit payments, how the figures quoted relate to his Department's PSA target on the proportion of parents with care on income support and income-based jobseeker's allowance who receive maintenance for their children; and if he will make a statement. [78075]
§ Malcolm WicksThe figures are consistent with one another. The figures given in the answer of 15 October 2002,Official Report, c. 635W, on Child Support maintenance, are based on aggregates of:
- (a)for 1997, figures, for both total number of parents with care in receipt of the relevant benefit and the number of such parents with care receiving maintenance, for Income Support, income-based Jobseekers Allowance, Family Credit and Disability Working Allowance;
- (b)for 2002, figures, for both total number of parents with care in receipt of the relevant benefit and the number of such parents with care receiving maintenance, for Income Support, income-based Jobseekers Allowance and Working Families Tax Credit.
The Department's Public Services Agreement target refers only to clients who are receipt of Income Support.
§ Mr. WebbTo ask the Secretary of State for Work and Pensions if benefit and tax credit recipients who opt to receive payment via a Universal Bank basic account will be able to access their money over the counter at any post office branch. [78553]
§ Malcolm WicksUniversal banking services will consist of two elements: access to basic bank accounts at Post Office branches and the Post Office card account. Benefit and tax credit recipients who choose to use universal banking services to access their money will be able to do so at all Post Office branches.