Question to the Department for Work and Pensions:

To ask Her Majesty's Government, further to the reply by Baroness Penn on 19 July (HL Deb col 4), how many retired pensioners have been issued with pre-payment cards.

The Department of Work and Pensions does not offer pre-paid cards. The main method of paying customers is into a standard bank, building society or credit union account. However, there are exceptions in limited circumstances.

The Department currently provides two Payment Exception Services which allow customers access to their payments. These are Her Majesty’s Government Payment Exception Service (HMG PES) and the Post Office Card account.

The Payment Exception Service is aimed at those customers who are unbanked and are either unable to open or use a bank account. It is designed for access to cash only. The contract expires 30 September 2021, but a similar procured new Payment Exception Service will replace HMG PES.

The Post Office Card Account is a basic deposit service for benefits and pensions, delivered by Post Office Limited on behalf of the Department. This service is due to end and customers will either convert to a standard bank, building society or credit union account. Those customers who are unable to open or use an account will be migrated to the new Payment Exception Service on a staged basis from August 2021.