Previous Section Index Home Page


Automated Credit Transfer System

Mr. Crausby: To ask the Secretary of State for Social Security (1) if he will make it his policy to ensure that recipients who collect their benefits on a weekly basis will be able to continue to do so when Automated Credit Transfer is introduced in 2003; [108418]

Mr. Rooker: This is one of a number of issues to be considered on the move to payments by Automated Credit Transfer. No decisions have yet been taken, but we will ensure that the new arrangements from 2003 continue to meet people's needs.

On recent representations, I refer my hon. Friend to the written answer I gave the right hon. Member for Yeovil (Mr. Ashdown) on 28 January 2000, Official Report, column 372W.

Mr. Cotter: To ask the Secretary of State for Social Security (1) what steps he has taken to ensure the accuracy of benefits payments made through the automated credit transfer system; and if he will make a statement; [107963]

7 Feb 2000 : Column: 59W

Angela Eagle [holding answer 2 February 2000]: The administrative cost of making benefit payments through automated credit transfer (ACT) is a small fraction of the cost of other methods. For example, it costs 49p every time an order book foil is presented, and 79p per giro cashed, against 1p for each ACT payment. We expect savings in administrative costs of £400 million a year when ACT becomes the norm.

Under and over-payment of benefit may occur for a number of reasons. I am aware of only one occasion (involving nearly 112,000 customers being overpaid a total of about £10.5 million) where the ACT process itself has been the cause of under or over-payment. The Benefits Agency is taking urgent steps to recover the money and to ensure it does not happen again.

Social Fund (Funeral Expenses)

Mr. Levitt: To ask the Secretary of State for Social Security if he will review the rules governing payments for funeral expenses from the Social Fund to make them easier to understand and to implement. [108439]

Angela Eagle: The Funeral Payment scheme was revised in April 1997 to make it easier to understand and to increase the level of help available to eligible people. The previous provision was complex, making it difficult for claimants to work out how much was allowable for individual items which were specified in regulations, and this led to inconsistent decision making. Further changes were made in November 1997 and again in January of this year. The latest revision has reduced the complexity of the scheme further by setting out more clearly the arrangements for meeting burial and cremation charges.

Under current legislation, therefore, where an eligible person is deemed to have good reason for taking responsibility for funeral expenses, the scheme allows for the fees levied by the burial authorities and crematoria (in so far as it is necessary to incur them), specified travel expenses and up to £600 for any other funeral expenses.

We do not plan any further reforms in the immediate future but will continue to review the policy periodically.

Armed Services Pensions

Mr. David Atkinson: To ask the Secretary of State for Social Security if those in receipt of an armed services pension are entitled to unemployment and other benefits; and if he will make a statement. [108739]

Angela Eagle: Armed services pensions are taken into account in the benefits system in the same way as any other occupational pension.

7 Feb 2000 : Column: 60W

Occupational pensions are taken fully into account in income-based Jobseeker's Allowance, Income Support, Housing Benefit and Council Tax Benefit. Working Families Tax Credit also takes occupational pensions fully into account.

Contribution-based Jobseeker's Allowance is reduced on a penny-for-penny basis for any amount of pension received in excess of £50 a week.

Incapacity Benefit is not currently affected by occupational pensions. However, from April 2001, any occupational pension above £85 a week will affect entitlement for new claimants. The amount of benefit payable will be reduced by 50p for each £1 of pension received above £85.

Benefits

Mr. Burstow: To ask the Secretary of State for Social Security (1) how many Benefits Agency claimants were overpaid (a) benefit and (b) income support in each of the last 12 months; and how many of these claimants have repaid that (i) benefit and (ii) income support in full; [108643]

Angela Eagle: Administration of benefits and recovery of overpayments is a matter for the Chief Executive of the Benefits Agency, Peter Mathison. He will write to the hon. Member.

Letter from Mark Fisher to Mr. Paul Burstow, dated 4 February 2000:


7 Feb 2000 : Column: 61W

7 Feb 2000 : Column: 62W

7 Feb 2000 : Column: 61W

7 Feb 2000 : Column: 61W

7 Feb 2000 : Column: 63W


Next Section Index Home Page