Oral question asked in the House of Commons, by Lord Dodds of Duncairn (Democratic Unionist Party). It was answered on Thursday, 1 December 2005 on behalf of the Department of Trade and Industry.

Rural Post Offices

Question: Recognising the importance of the post office network to rural and urban communities, will the Minister indicate the impact thus far of the switch to the way in which people receive their benefit and pension payments from post offices to banks?

Answer: I am glad that the hon. Gentleman has raised that important question, because 97 per cent. of benefit recipients now access their payments by direct payment into their bank account. It is often thought that the closures were precipitated by changes in the method of pension payments and the introduction of Post Office card accounts; in fact, they started long before the changes took place. Way back in 1999, a dramatic change had already started in the number of people who received their benefits by other means. Because of the new facilities available to them—internet banking and so on—our constituents have chosen different methods to access their own finances and the Government have responded to that. In 2000, about 70 per cent. of all benefits were paid by order book, but that proportion had already fallen to 57 per cent. by 2003, when the direct payment scheme was launched.

Secondary information

Type: Oral question
Reference: 440 c378
Session: 2005-06
Oral question type: Supplementary
Chamber / Committee: House of Commons chamber
Subjects: Banks Financial services Post offices Rural areas Urban areas Finance
Link: View this Oral question on www.publications.parliament.uk