Pension Payment Arrangements (Hansard, 22 July 2004)

§ Norman Baker
To ask the Secretary of State for Work and Pensions how many and what percentage of448W pensioners in (a) England, (b) East Sussex and(c) Lewes constituency are using pension books to collect their pensions at a post office. [1859051

§ Mr. Pond
Information available on pensioners (women over 60 and men over 65) as at 15 May 2004 in(a) England (b) East Sussex and (c) Lewes constituency receiving their retirement pension by order books, collectable at a post office, is shown in the table.

Accounts paid by order book Percentage of retirement pension accounts paid by order book

England 2,936,800 37

East Sussex 32,505 28.40

Lewes 5,210 25.60

Notes:

1. Figures are rounded to the nearest five.

2. Figures do not include retirement pension combined with pension credit in a single payment.

Source:

IAD information Centre, 100 per cent. sample.

§ Norman Baker
To ask the Secretary of State for Work and Pensions how much has been spent to date on the change of pension payment arrangements from book to bank account; and how much of that has been spent on contact with recipients. [185906]

§ Mr. Pond
We are unable to answer in the format requested.
As at the 31 March 2004 the Department had, through its payment modernisation programme, incurred £210 million towards converting benefit and pensions customers from paper based methods of payment to payment by direct payment. Of this total around £90 million related to the cost of contacting benefit and pension customers. With the remainder being spent on project team costs, IT development, marketing and training of staff.

§ Michael Fabricant
To ask the Secretary of State for Work and Pensions how many pensioners who receive their pensions by giro have agreed an alternative means of payment with the Government. [159752]

§ Mr. Pond
Only a very small number of pensions customers receive their pension by giro, and in the 12 month period ending 24 January 2004 less than 50 changed to another method of payment.
Almost nine out of ten (87 per cent) of benefit customers already have an account suitable for Direct Payment, and this rises to 90 per cent. for pensioners.

§ Sarah Teather
To ask the Secretary of State for Work and Pensions what assessment his Department has made of the importance of regular income in helping the elderly budget for their needs. [186253]

§ Mr. Pond
The Government acknowledge the importance of pension payment arrangements that reflect elderly people's budgeting needs. We therefore offer a range of payment frequencies for benefits. Pensioners can choose to have their state pension paid weekly, four weekly or 13 weekly; pension credit is paid weekly.
449W
The move to Direct Payment involves no changes to customers' existing benefit and pension payment frequencies. Pensioners who receive their pension by weekly order book will continue to receive their pension weekly when they transfer to Direct Payment.

§ Sarah Teather
To ask the Secretary of State for Work and Pensions (1) what proportion of pension payments paid into bank accounts since the beginning of the current financial year have not been paid seven days after the previous payment; [186249]
(2) how many bank accounts into which pensions are directly paid have had at least one occasion where the payment has not been paid exactly seven days after the last one; [186251]
(3) what steps he has taken to ensure that pensions paid into bank accounts are done paid every seven days. [186252]

§ Mr. Pond
The information is not available in the format requested.
Pensioners can choose to have their state pension paid weekly, four weekly or 13 weekly; pension credit is paid weekly.
Since the beginning of the financial year there have been no occasions when pension payments generally have been paid late into bank accounts. However there will have been individual cases where a change of circumstance has caused a review of the award, which may delay a payment. There may also be instances where banks have rejected payments because of changes to account details or similar circumstances.
The Department ensures that payments due payment on a bank holiday are advanced so that customers can get the money before the holiday. The general rule for direct payment is that payment due on a UK bank holiday (including 2 January in Scotland) is advanced to the last banking day before the holiday.

§ Sarah Teather
To ask the Secretary of State for Work and Pensions into how many bank accounts pensions are directly paid. [186250]

§ Mr. Pond
The information is not available in the format requested.
However, information is available to show that, as at 15 May 2004, 6,794,800 pensions accounts were paid by direct payment. Included in his total are 377,130 payments direct into a Post Office card account.

§ Mr. Willetts
To ask the Secretary of State for Work and Pensions how many pensioners have migrated from over-the-counter benefit payments to automated credit transfer in each month since May 1997. [177553]

§ Mr. Pond
The precise information is not available in the format requested. The number of pensioners (women over 60 and men over 65) that have migrated from over the counter benefit payments to direct payments each month since 15 June 2002 is shown in the table.

Month Number of accounts

15 June to 13 July 2002 4,460

13 July to 10 August 2002 16,000

450W

Month Number of accounts

10 August to 7 September 2002 13,240

7 September to 5 October 2002 3,840

5 October to 2 November 2002 19,805

2–30 November 2002 4,560

30 November to 28 December 2002 21,445

28 December 2002 to 25 January 2003 3,730

25 January to 22 February 2003 26,065

22 February to 22 March 2003 20,310

22 March to 19 April 2003 6,620

19 April to 17 May 2001 19,715

17 May to 14 June 2003 30,075

14 June to 12 July 2003 7,120

12 July to 9 August 2003 34,130

9 August to 6 September 2003 69,475

6 September to 4 October 2003 10,255

4 October to 1 November 2003 128,745

1–29 November 2003 115,710

29 November to 27 December 2003 20,045

27 December 2003 to 24 January 2004 188,080

24 January to 21 February 2004 182,205

21 February to 20 March 2004 108,665

20 March to 17 April 200 1 296,865

Notes:

The following special points should be noted:

1. Figures produced by comparing two snapshots of live accounts in payment on the specified dates where the method of payment variable has changed to direct payment on the second dataset.

2. Figures produced relate to accounts not claimants, a benefit recipient may therefore have more than one account. Figures do not include any benefit payment that is made "in combination", through another benefit system, such as state pension paid through the pension credit system as a combined payment.

3. Over the counter payments includes order books and giros.

4. Figures are rounded to the nearest 5.

5. Figures refer to pensioner age benefit recipients residing in GB only.

6. Included in these figures is payments made to customers by girocheque. Girocheques are encashable at either a bank/building society account or a post office.

7. Some customers who are paid direct into an account can also collect their payments in cash at post offices through the wider range of banking services now available at the post office. There is no data available on the number of benefit claims collected in this way.

	Accounts paid by order book	Percentage of retirement pension accounts paid by order book
England	2,936,800	37
East Sussex	32,505	28.40
Lewes	5,210	25.60
Notes:
1. Figures are rounded to the nearest five.
2. Figures do not include retirement pension combined with pension credit in a single payment.
Source:
IAD information Centre, 100 per cent. sample.

Month	Number of accounts
15 June to 13 July 2002	4,460
13 July to 10 August 2002	16,000

Month	Number of accounts
10 August to 7 September 2002	13,240
7 September to 5 October 2002	3,840
5 October to 2 November 2002	19,805
2–30 November 2002	4,560
30 November to 28 December 2002	21,445
28 December 2002 to 25 January 2003	3,730
25 January to 22 February 2003	26,065
22 February to 22 March 2003	20,310
22 March to 19 April 2003	6,620
19 April to 17 May 2001	19,715
17 May to 14 June 2003	30,075
14 June to 12 July 2003	7,120
12 July to 9 August 2003	34,130
9 August to 6 September 2003	69,475
6 September to 4 October 2003	10,255
4 October to 1 November 2003	128,745
1–29 November 2003	115,710
29 November to 27 December 2003	20,045
27 December 2003 to 24 January 2004	188,080
24 January to 21 February 2004	182,205
21 February to 20 March 2004	108,665
20 March to 17 April 200 1	296,865
Notes:
The following special points should be noted:
1. Figures produced by comparing two snapshots of live accounts in payment on the specified dates where the method of payment variable has changed to direct payment on the second dataset.
2. Figures produced relate to accounts not claimants, a benefit recipient may therefore have more than one account. Figures do not include any benefit payment that is made "in combination", through another benefit system, such as state pension paid through the pension credit system as a combined payment.
3. Over the counter payments includes order books and giros.
4. Figures are rounded to the nearest 5.
5. Figures refer to pensioner age benefit recipients residing in GB only.
6. Included in these figures is payments made to customers by girocheque. Girocheques are encashable at either a bank/building society account or a post office.
7. Some customers who are paid direct into an account can also collect their payments in cash at post offices through the wider range of banking services now available at the post office. There is no data available on the number of benefit claims collected in this way.