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Dept of Social Security

Answer

Mr. Fabricant: To ask the Secretary of State for Social Security if he will make a statement on the conclusion of his review of income support direct payments announced on 19 July. [17970] Mr. Lilley: I have completed my review of direct payments for fuel and water, which included consultation with over 60 interested groups including the regulators, utility companies and consumer groups. I have concluded that the direct payments scheme continues to play an important role in protecting benefit recipients who might otherwise be at risk of having their fuel or water supply disconnected, and for whom no alternative payment methods are suitable, but it is clear that the scheme is used by some people who are capable of making their own arrangements with the utility company. Those who are capable of managing their own financial affairs should be encouraged to do so. I therefore intend to maintain the scheme for the foreseeable future, as a last resort measure to avoid disconnection, but to make more explicit the circumstances whereby direct payments remain appropriate. I intend to introduce amending regulations to define more clearly the eligibility conditions for the scheme, and to agree with each utility industry a new code of practice on the application of the new rules. Copies of the report of my review are available in the Library.

Secondary information

Type

Written question

Reference

17970; 291 c283-4W

Session

1996-97

Subjects

Decreases Income support Energy Prices Social security benefits Water charges