Written question asked by David Madel (Conservative), in the House of Commons. It was due for an answer on Tuesday, 5 November 1996. It was answered by Lord Lilley (Conservative) on Tuesday, 5 November 1996 on behalf of the Department of Social Security.

Dept of Social Security

Question: What plans he has for the extension of benefit payment by plastic card.

Answer: Sir David Madel: To ask the Secretary of State for Social Security what plans he has for the extension of benefit payment by plastic card. [2741] Mr. Lilley: The first benefit payments under the new payment card scheme have been successfully made to a small number of child benefit customers in the Stroud area. Payments are being made using both the new payment card and new benefit encashment systems. Co-operation with our private sector supplier, ICL-Pathway, has enabled us to deliver these in less than six months from the award of contract. Ten post offices have so far been automated to enable card payments to be made. From this we will progress to live-trials at a further 190 post offices from April next year. When all aspects of the new systems have been fully tested we will push ahead quickly, automating an average of 300 post offices per week from next summer. The Payments in Stroud represent the first step in a huge programme which will affect about 20 million people who collect DSS benefits through post offices in the UK. In view of the scale and importance of the changes we intend to trial the systems thoroughly with child benefit before paying further benefits by card. We will be taking account of our experience of child benefit before implementing these changes and I shall be making a further announcement in due course.

Secondary information

Type: Written question
Reference: 2741; 284 c456-7W
Session: 1996-97
Subjects: Contracts Child benefit Software Payments Post offices Social security benefits Automation Stroud