1 July 2003

100,000 SOCIAL SECURITY CUSTOMERS OPT FOR DIRECT PAYMENT

Almost 100,000 social security customers have said yes to having their benefit paid directly into a bank, building society or Post Office® card account in the three months since Direct Payment was launched, John Spellar, the Minister with responsibility for Social Development, announced today.

Order books are being phased out over the next two years and will be replaced by payment directly into accounts at the bank, building society or Post Office®.

The Social Security Agency has 515,000 customers who will transfer to Direct Payment between now and 2005.

Direct Payment is a more effective, modern and safer way for benefits to be paid. It allows better access for customers to their money and allows them to take as much or as little as they need, as and when it suits.

John Spellar MP, Minister with responsibility for Social Development, said: "The invitation letters are being sent out on a benefit by benefit basis. Some Child Benefit, State Pension, Income Support and Incapacity Benefit customers have already been invited to transfer to Direct Payment.

"Customers are also being sent a leaflet that sets out their options. Customers on Direct Payment will continue to receive their benefit at the same frequency as they do now.

"An extensive publicity campaign is underway. The campaign will inform and support customers in making the change to Direct Payment."

In April 2003 all of the leading banks and building societies launched their range of Basic Bank Accounts and the Post Office® also made their new Post Office® card account available. Both these accounts allow customers to continue to collect their benefit at the Post Office®, should they wish to do so.

NOTES FOR EDITORS:

Information about Direct Payment can be obtained by ringing the Information Line on 0800 107 5000.

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