Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what comparative assessment he has made of levels of indebtedness among people who use (a) bank accounts and (b) Post Office Card Accounts for payment of pensions and benefits.

The Department has not carried out a comparative assessment.

In line with our wider policy on financial inclusion we have always made it clear that payment into a bank, building society or credit union is the preferred way pension and benefits are paid. Access to appropriate mainstream financial services, that meet the customer’s needs, is important to support personal and financial independence. There are now fewer barriers to prevent people from using bank accounts. The nine largest personal current account providers in the UK are legally required to offer basic bank accounts to customers who do not have a bank account or who are ineligible for a bank’s standard current account, provided that the customer is legally resident in the EU. Basic bank accounts minimise the risk of unarranged overdrafts and end bank charges if a direct debit or standing order fails.