HC Deb 07 July 2003 vol 408 cc609-10W
Dr. Cable

To ask the Secretary of State for Work and Pensions pursuant to his answer to the hon. Member for North-East Hertfordshire on 20 May 2003,Official Report, column 753W, on Post Office card accounts, if he has made an estimate of the number of customers to whom he referred who are unable to open or manage an account; if he will list the alternative payment methods which are being considered; and if he will make a statement. [117742]

Mr. Pond

Around 87 per cent. of our customers already have access to an account suitable for Direct Payment and there is now a wide range of easy to operate bank and building society accounts available. The availability of these accounts at the Post Office, and the Post Office card account will mean that there should only be a small number of people for whom direct payment will not be suitable.

We will gain better information on specific numbers as customers respond to their invitation letters.

We are looking to develop an alternative method to pay this group. We have analysed a range of options. However, further research with specific interest groups and customers will inform the final decision. This service will be accessible at Post Office branches.

Mr. Alan Reid

To ask the Secretary of State for Work and Pensions pursuant to the statement of 11 June 2003, of the Minister for Pensions.Official Report, column 773, if he will list the client groups that his Department has contacted early on; and if he will make a statement on the order in which client groups will be written to inform them that they must specify a bank or a Post Office card account into which their benefits and pensions will be paid. [124134]

Mr. Pond

The mailing exercise for direct payment began in October 2002 with four weekly paid child benefit customers and people in receipt of a war pension.

Since then we have continued to issue mailings to recipients of these benefits and begun to issue mailings to people in receipt of weekly paid child benefit and those in receipt of pensions and some Jobcentre Plus benefits. These include income support, incapacity benefit, industrial injuries scheme benefits, severe disablement allowance, bereavement benefit and widows benefit.

Jobseeker's allowance customers will be dealt with as part of their usual contact with the Department and will not receive a mailing.

We will begin mailing customers in receipt of disability and carer benefits, including carer's allowance, disability living allowance and attendance allowance, from August 2003.

The huge numbers of customers involved in the conversion process mean the changes will be phased over a two-year period. Customers do not need to do anything until they receive a letter from the Department.