13 January 2005 - A helping hand with Direct Payment of benefits and pensions
Extra help is going to people who have not yet converted to having their pension or benefits paid into an account at a bank or Post Office.
Support with opening an account and advice on using one is being given by a range of organisations across the country.
Order books – the old-fashioned way of paying pensions and benefits - are being phased out and replaced by the modern, safer and more flexible system of paying the money directly into accounts at banks, building societies and the Post Office.
Although millions of people have already converted to being paid this way there are still some customers who have not and they may need help to prepare for when order books are phased out altogether next month.
Work and Pensions Minister Chris Pond said:
“Direct Payment has been a success so far, but we have to do a little bit extra to meet the needs of the hardest to reach customers so they can enjoy the same benefits others get.
“What we are saying to those who haven’t converted yet is give it a try. We have heard from plenty of customers, including pensioners who had initial concerns but are pleased they have made the change. Over 90 per cent were happy with the change.
“Sometimes all that people need is a helping hand and we are providing this through local community organisations.
“Every year, fraudsters used to swindle £50m in lost and stolen order books –100 books were stolen from pensioners each week. So Direct Payment is not only better, it’s safer.
“Already more than 3 out of 4 people have their money paid into an account and more are choosing this method every week.”
Independent research, recently carried out for the DWP, showed that 82 per cent of customers who had opened an account specially to receive benefits by Direct Payment found the process easy. However, for the minority who did not, we are working with a range of partners who will help in a practical way, for example by assisting people with application forms.
The partner organisations can provide the local expertise that will help people get over any barriers they face in their particular area. This assistance is primarily aimed at elderly, disabled and housebound people and black and ethnic minority communities as these groups are generally proving to be our hardest to reach customers, in terms of getting the message across about the move to Direct Payment.
It will help them to receive their benefit or pension by Direct Payment and also benefit from the other advantages of having a bank account, such as savings on fuel bills by making payments by Direct Debit.
Notes for editors
- Customers can choose to have their benefits or pensions paid into a current or savings account, a basic bank account which has access at the Post Office, or a Post Office card account.
- Anyone can get further information on being paid into an account by calling 0800 107 2000 (England and Scotland), 0800 107 8000 (Wales), or 0800 107 5000 (Northern Ireland).
For media enquiries please call Madeleine Jamieson on 020 7238 0723, John Fennessy, 020 7238 0762 or Kathy Barlow 020 7238 0766
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171