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Dept of Social Security

Answer

Mr. Anthony Coombs: To ask the Secretary of State for Social Security if a service provider has been selected to supply and operate the new technology which will automate Post Office counter operations with particular reference to the payment of social security benefits; and if he will make a statement.[29632] Mr. Lilley: Pathway Group Ltd. has been selected as the successful service provider under the private finance initiative. Pathway Group Ltd. is a wholly owned subsidiary of ICL plc. Their major sub-contractors are Girobank, De La Rue and the Irish Post Office An Post. The new benefit payment arrangements are intended to combat the deficiencies of the current system, including significant losses through fraudulent encashment, and will help secure the future of the post office network. Introducing the new system will entail replacing order books and girocheques with a plastic card. The views of customers and their representatives have been taken into account to ensure that they, and Post Office staff, will find the new system easy to use. The current planning assumption is that the first cards will be issued this autumn starting with some child benefit recipients. Other benefit groups will follow and the table sets out our current assumptions for the transition. These indicative plans will be subject to review in the light of experience. There will be a pilot of up to three months for each benefit group before full rollout commences. The length of time it will take to complete the change to card for all customers in each benefit group will depend on the rollout of automation into post offices, but we expect almost all customers to be paid by the card system by mid-1999. _________________________________________________________________________________________________. Benefit Type Planned rollout start Date Child Benefit October 1996 Incapacity Benefit \ Severe Disability Allowance | Widows Benefit | Maternity Allowance / February 1997 Family Credit \ Disability Working Allowance | May 1997 Earnings Top Up / Disability Living Allowance \ Attendance Allowance | July 1997 Guardians Allowance / Retirement Pension July 1997 Income Support January 1998 Jobseeker's Allowance January 1998 Social Fund April 1998 War Pensions April 1998 _________________________________________________________________________________________________.

Secondary information

Type

Written question

Reference

29632; 277 c451-2W

Session

1995-96

Subjects

Contracts Payments Post offices Social security benefits Automation