Cash Network

Baroness Hoey Excerpts

Tuesday 7th September 2021 Lords Chamber

[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.

[Baroness Hoey (Non-Afl)]

My Lords, the Minister knows that the ending of the Post Office card account, with the Government refusing to renew the contract, is going to really hit those very poorest pensioners who depend on that cash—that is practically all they have to take out each week. Week after week they are now getting letters telling them they must get a bank account or some other kind of digital banking. Why will the Government not accept that the Post Office card account should be retained to help those very poorest pensioners who rely on it, without the bureaucracy of a bank?

[Lord Agnew of Oulton (Con)]

My Lords, it is not difficult to open a bank account. What we need to do is keep encouraging these elderly people who do not have an account yet to open one.