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Benefit Payment Methods

Work and Pensions written question – answered on 7th April 2005.

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Photo of Sir David Amess Sir David Amess Conservative, Southend West

To ask the Secretary of State for Work and Pensions if he will make a statement on payment mechanisms for state benefits.

Photo of Mr Chris Pond Mr Chris Pond Parliamentary Under-Secretary, Department for Work and Pensions

Direct payment into an account is now the normal way that we pay benefits and pensions, over 96 per cent. of customer accounts are now paid this way.

Direct payment increases choice, reduces fraud and assures a safe, convenient, more modern and efficient way of paying benefits. It increases financial inclusion, and allows people to make savings on many of their bills by paying by direct debit. It also reduces waste in social security administrative costs and protects vulnerable customers.

The small number of customers that cannot be paid this way will be paid by cheque, which can be cashed at the post office or paid into an account.

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