Cash Network

Lord Young of Cookham Excerpts

Tuesday 7th September 2021 Lords Chamber

[Lord Agnew of Oulton (Con)]

I agree with the noble Lord that we are going to remain a cash society for a considerable time, but I reassure him that, as of the first quarter of this year, over 99% of the population was within two kilometres of free cash withdrawal.

[Lord Young of Cookham (Con)]

My Lords, in July I asked whether unbanked pensioners could be issued with debit cards, topped up with their monthly pensions, which they could use in shops—a facility already available to universal credit claimants. I was told that this service was widely available, but when I asked the DWP it told me that only 350 pensioners have these cards. As more and more retailers refuse to accept cash, should not more unbanked pensioners be issued with these cards?

[Lord Agnew of Oulton (Con)]

As my noble friend is aware, the DWP payment policy is to pay benefits and pensions into a standard bank, building society or credit union. The DWP encourages customers to provide standard bank account details, to give them greater choice in where and how they collect their money. Customers who receive their payment into an account of their choice are financially included and can benefit from a wide range of financial services, such as direct debits. A standard account allows customers to access cash payments via post offices, as I mentioned in a reply to an earlier question. The DWP payment exception service is a small-scale scheme where vouchers are uploaded to a card or sent electronically by SMS or email. It is available to that small minority of claimants who cannot open or use a standard bank account. It is not a prepaid card and cannot be used to purchase goods and services.