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Pensions (Payment)

Volume 984: debated on Tuesday 6 May 1980

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asked the Secretary of State for Social Services what is his estimate of the saving over the last financial year of paying pensions directly into the bank accounts of those entitled; and when he will consider offering this procedure as an alternative choice for recipients.

The Government, like their predecessors, agree in principle that the public should be able to have their benefits paid direct into bank accounts if they wish. Urgent consideration is being given to the administrative and financial implications of offering this payment method and an announcement will be made as soon as possible. If 2 million mothers and 1 million pensioners chose to have their child benefit and retirement pensions respectively paid direct into their bank accounts, estimates suggests that DHSS administrative costs would drop by about £7 million a year eventually.