24 September 2004 - Nine out of ten pensioners say payment into an account makes life easier
Millions more pensioners, mothers, carers and jobseekers are enjoying the greater choice, safety and savings Direct Payment brings.
Nine out of ten people say changing to modern accounts has transformed their lives for the better.
Publishing new independent customer research today, Work and Pensions Minister Chris Pond said: “The proof of the pudding is in the eating as most people think the new way they’re paid their money is better than order books or giros.
“Modernising a system which came in with rations books causes understandable concerns, but this research shows that the new system is proving popular. Customers are finding new accounts easy to open, are happy with the information they get and can use PIN numbers easily.
“A few years ago many pensioners had as little as £69 a week to cash at a time. With the improvements in pension levels, they could well be carrying around £160 or more in cash if they have to use an order book.
“We’re now well on track to meet our first target of getting 85 per cent of customers paid by account by April 2005.
“We now have over 16 million reasons why we were right to introduce a pension and benefit payment system fit for 2004 not 1944 – our customers.
“But we’re not complacent and that’s why we will be studying this research carefully to make improvements in those areas we could do better.”
Key findings from the customer research are:
- 91 per cent are satisfied with Direct Payment arrangements.
- 88 per cent of pensioners are satisfied with Direct Payment arrangements.
- 93 per cent are satisfied with having payments into an account.
- 82 per cent said opening an account was easy.
- Only two per cent had problems remembering or using their PIN.
The research is backed up by separate cases of personal support Direct Payment has received from delighted customers across the country.
Mrs Ada Gollings of Stanley, Wakefield, is typical of many customers initially concerned about changing to Direct Payment: “I thought it would be more difficult than it was. I find it absolutely fantastic. It’s made a real difference to our lives - we’ve even managed to save some money as we don’t have to cash the whole benefit in one go.”
She added that Direct Payment was much safer because you don’t have to carry your order book about with you.
Pensioner Joan Myers and her husband, of Hindley, Wigan, both get their money paid through Direct Payment now and Mrs Myers said: “The flexibility of being able to get to your pension at any source is great, it makes sense as it’s easier.
“We’ve just been on holiday to Eastbourne and my husband was able to get his pension money out of the local Post Office there, it couldn’t have been simpler. With Direct Payment you don’t have to worry about the security of your money.“
Lindsey Topping of St Helens, Merseyside, a mum with an eight-month old son and carer of her disabled stepfather, uses the Post Office card account and said: “It’s a great – I find it a much better system than receiving a giro. Because Direct Payment is a card rather than a Giro, there’s more privacy as nobody can see how much I’m being paid.
“It’s also much safer than receiving a Giro. I was always worried about cashing my Giro at the Post Office in case it fell out of my handbag and someone stole it.
“If my card does get lost or stolen I don’t need to worry as it can’t be used by anyone else. If you haven’t got the PIN number you can’t get the cash.
Norman Golsby, 81, of Coventry, gets his pension paid into his bank account and said: “It makes it that much easier because my pension automatically gets paid into the same account that my bills go out of. Having the PIN card gives me more freedom, I can access my money wherever I go and that’s more accessible to me day or night.”
Pensioner Mr Morgan of Derby said: “It gives you more flexibility and is a far safer way to receive your pension.”
Notes for editors
- "Customer Experience of Direct Payment" - DWP In house report 150 is published on 24 September 2004. A summary and copy of the report are available on the DWP website at http://www.dwp.gov.uk/asd/asd5
- More examples of customer experience using Direct Payment are available from DWP Press Office
For more information contact John Fennessy or Kathy Barlow on 020 7238 0762/0723
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk / www.targetingfraud.gov.uk