12 May 2004 - Payments to vulnerable customers during conversion to Direct Payment
Work and Pensions Minister Chris Pond today announced that vulnerable people will be paid by cheque, which can be cashed at the Post Office, following the conversion of benefits and pensions to Direct Payment.
Over seven million customers have converted to Direct Payment so far but there will be a minority of customers who cannot open or manage an account, for example due to illness or disability.
Chris Pond said today: “Direct Payment is a more modern, reliable and safer method of payment which has proven popular with pensioners and benefit recipients. More customers are now paid into an account rather than by order book and enjoy the increased flexibility and security that this brings.
“We have already announced that we will stop using order books from next year and so we have to protect those vulnerable customers who are genuinely unable to manage an account.
“This is not an alternative option for those who can operate an account but a way of ensuring those who cannot, continue to get their money once the switchover to Direct Payment is complete.
“We have liased with groups including CAB, Help the Aged, Age Concern and MIND to try to design the best possible service. That‘s why we will pay those customers concerned by cheque, with enhancements to security.”
The cheques can be issued on a weekly basis to home addresses and are cashable at Post Office branches as well as payable into bank accounts. They also offer flexibility for those customers who have a series of different people collecting their money for them.
Cheque payments will start in October and until then affected customers can continue to use their order books.
Customers who can manage an account now have more options for receiving their money than ever before in a much-improved service offering greater choice. Options include: using an existing bank or building society account; opening a new current account at a bank or building society; opening a new basic bank account at a bank or building society or opening a Post Office card account.
DWP is providing information to customers on all their account options enabling them to choose the one which best suits their own needs.
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Website: www.dwp.gov.uk