Written question asked by Helen Clark (Labour) on Thursday, 4 December 2003, in the House of Commons. It was due for an answer on Monday, 15 December 2003. It was answered by Chris Pond (Labour) on Monday, 15 December 2003 on behalf of the Department for Work and Pensions.

Dept for Work and Pensions

Question: To ask the Secretary of State for Work and Pensions, what the evidential basis is for the claim in his Department's internal memorandum from the Project Manager for the Payment Modernisation Programme, that paying pensions through Post Office accounts costs 30 times as much as through bank accounts.

Answer: Mrs. Helen Clark: To ask the Secretary of State for Work and Pensions what the evidential basis is for the claim in his Department's internal memorandum from the Project Manager for the Payment Modernisation Programme, that paying pensions through Post Office accounts costs 30 times as much as through bank accounts. [143202] Mr. Pond: The internal memorandum states costs are at least 30 times more for making payments into a Post Office card account than into a bank account. This statement is on the basis that, whereas the financial institutions meet the operating costs of providing their bank accounts, the Government pay additional costs to the Post Office for the provision of the Post Office card account services.

Secondary information

Type: Written question
Reference: 143202; 415 c685-6W
Session: 2003-04
Subjects: Costs Bank services Pensions Payments Post offices Social security benefits Post office card account Automated credit transfer Payment methods
Link: View this Written question on www.publications.parliament.uk