HC Deb 21 January 2004 vol 416 cc1342-6W
Mr. Weir

To ask the Secretary of State for Work and Pensions how many pensioners in the Angus constituency have changed their method of receiving payment of their retirement pension from pension book to direct payment into bank account in each of the last six months. [147462]

Mr. Pond

The information is not available in the format requested. However, information available is supplied in the table. The table shows the breakdown of pensioners (women aged 60 and over, men aged 65 and over) in the Angus constituency that have changed their state pension method of payment from pension book to direct payment into a bank account in the last six months broken down into periods available.

More pensioners in the Angus constituency are now paid directly into an account than by Order Book.

Number of pensioners changing their state pension method of

payment from pension book to direct payment into an account

Number
14 June-26 July 2003 73
26 July-6 September 2003 151
6 September-25 October 2003 177
25 October-29 November 2003 250
Total 651

Note:

An account includes bank, building society or Post Office card account

Source:

DWP Information Centre, Information & Analysis Directorate (100 per cent. sample).

Mr. Weir

To ask the Secretary of State for Work and Pensions how many pensioners in the Angus constituency received their retirement pension by means of(a) pension book and (b) direct payment into a bank account as at 1 January. [147463]

Mr. Pond

The information is not available for the date requested.

However, the table shows the breakdown of pensioners (women aged 60 and over, men aged 65 and over) in the Angus constituency that received their state pension by means of pension book and direct payment into a bank account, at 29 November 2003, which is most recent data available:

More pensioners in the Angus constituency are now paid directly into an account than by order book.

Method of payment Number of pensioners
Pension book 5,751
Direct payment into an account 8,315
Total 14,066

Note:

An account includes bank, building society or Post Office card account

Source:

Benefit Accounts paid by

Direct Payment into

a bank or building

society account

Accounts paid by

Direct Payment into

a Card Account at

the Post Office

Accounts paid by

order book

Accounts paid by

other methods

Working age benefits
Jobseeker's allowance (JSA) 373,931 17,891 0 377,609
Income support (IS) 648,895 39,515 1,454,416 37,222
Incapacity benefit (IB) 583,742 15,931 674,821 11,743
Severe disablement allowance (SDA) 43,045 1,035 70,296 5,432
Industrial injuries (II) 152,837 9,073 277,035 0
Widow's benefit (WB) 86,549 1,137 77,591 270
Bereavement benefit (BB) 32,807 91 11,116 13
Working age benefits total 1,921,806 84,673 2,565,276 432,289
Disability and Carer Benefits Directorate
Disability living allowance (DLA) 1,052,318 14,992 1,029,434 87
Attendance allowance (AA) 356,014 1,780 169,633 107
Carer's allowance (CA) 111,001 405 298,086 0
Disability and carer benefits directorate total 1,519,333 17,177 1,497,153 194
Pensioners
State pension 5,048,649 68,665 4,025,027 45,527
Pension credit 562,249 4,754 1,478,766 10,242
Pensioners total 5,610,898 73,419 5,503,793 55,769
Grand total 9,052,037 175,269 9,566,221 488,252

Notes:

1. Figures refer to a snapshot of live accounts in payment on the following dates:

Income support—28 November 2003

Jobseeker's allowance—28 November 2003

Industrial injuries—21 November 2003

Pensions (state pension, incapacity benefit, severe disablement allowance, widow's benefit, bereavement benefit)—29 November 2003

Attendance allowance—15 November 2003

Disability living allowance—15 November 2003

Carer's allowance—30 June 2003

Pension credit—14 November 2003 (rated to end November)

Carer's allowance—30 June 2003

Pension credit—14 November 2003 (rated to end November)

2. Please note this is payload and not caseload therefore if a claimant is receiving more than one benefit e.g. pension credit (PC) and state pension (SP) but only receives one combined payment through the PC system they will only be shown as having a pension credit account and not a SP account.

3. Figures quoted are for GB only.

DWP Information Centre, Information & Analysis Directorate (100 per cent. sample).

Malcolm Bruce

To ask the Secretary of State for Work and Pensions to how many pension and benefit claimants his Department will write to invite them to move to direct payment. [149181]

Mr. Pond

We are in the process of issuing approximately 14.25 million invitations for pension and benefit customers to move to direct payment. We are making good progress and have so far issued almost 60 per cent. of these invitations.

Key figures on the progress of conversion to direct payment are available in the Library updated every four weeks.

Mr. Alan Reid

To ask the Secretary of State for Work and Pensions how many(a) working age benefits, (b) disability and carers' benefit, (c) retirement pension, (d) child benefit and (e) war pensions claimants are paid by (i) direct payment into a bank or building society account, (ii) direct payment into a post office card account, (iii) order book and (iv) other methods. [145975]

Mr. Pond

[holding answer 6 January 2004]: The figures in the table have been compiled from data available on 29 November 2003.

4. The Post Office Card Account has only been available since 1 April 2003. The numbers of customers being paid into a Post Office card account are expected to increase in the coming months as 20 week order books begin to expire and customers begin to receive payment direct into their card accounts.

5. Many bank and Building Society accounts allow access to cash at Post Offices, for benefits and pension customers who wish to collect their payment this way.

Source:

DWP Information Centre, Information & Analysis Directorate (100 per cent. sample).

War pensions and child benefit accounts are not included in the reply because they are now the responsibility of Ministry of Defence and Inland Revenue respectively.

Malcolm Bruce

To ask the Secretary of State for Work and Pensions how many pension and benefit claimants who were sent letters inviting them to move to direct payment have indicated that they cannot open or operate a bank account or Post Office card account; and what assessment his Department has made of the number of people who will use the exceptions service method of payment. [146746]

Mr. Pond

Research has shown that 87 per cent. of all our customers and 90 per cent. of pensioners already have an account suitable for Direct Payment.

Almost three and a half million customers have provided their bank account details, and around two million have requested a Post Office card account. However information on the number of customers replying that they could not specifically open or operate a bank or Post Office card account is not available in this format.

We will be further contacting all customers who continue to be paid by order book. Any customers, who cannot open or operate a bank account before order books are no longer available in 2005, will be paid by another method. In the meantime they will continue to receive their payments by order book.

We have always recognised that there will be a small number of people who we cannot pay directly into an account. Our plan is to design an exceptions method of payment to properly meet the needs of these customers. Detailed arrangements for this method of payment are not finalised yet, but it is likely that it will be a cheque-based solution. Payment outlets will include Post Office branches.

The move to Direct Payment is progressing well. Key figures on the progress of conversion to Direct Payment are available in the Library updated every four weeks.

Mr. Drew

To ask the Secretary of State for Work and Pensions what advice he is offering to local authority social services departments on direct payments with a view to encouraging each authority to adopt a clear strategy on take-up. [148272]

Mr. Pond

We have discussed the move to direct payment widely with customer representative groups including Local Government Association representatives.

The Department's primary objective continues to be to pay benefit and pensions direct into the chosen account of every customer who is able to manage their own affairs, or into a third party account nominated by the customer.

Customers are supplied directly with information that clearly sets out their account options and enables them to decide which account is right for them.