Direct payment of pensions and benefits
In April 2005 the Government changed the way in which pension and benefit recipients claim their money. Instead of collecting pensions and benefits using order books or girocheques, payments will be made directly into bank or building society accounts or into a post office card account. All order books and giro cheques will be phased out by April 2005.
Over the course of the past year many people have been contacted by the Department for Work and Pensions (DWP) and have been asked to decide which method of payment they prefer and to provide account details to enable DWP to change over the payments.
The Government recognises that some people will not, for a variety of reasons, be able to use the post office card accounts or bank and building society accounts to collect their pension or benefit payments. People unable to use the existing options will be able to retain their order book or girocheques until April 2005 at which time they will be transferred to the Government's Exception Scheme.
The Government announced some details of the Exception Scheme on Tuesday 11 May.
Exception Scheme
The Government confirmed that benefit and pension payments through the Exception Scheme would be made by cheque. They announced that these would be sent out on a weekly basis, except in cases where people currently receive their payments less frequently.
Further details regarding the Exception Scheme were not covered in the announcement. We have however been given some indication about how the scheme will work:
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cheques will be posted out so that they arrive on the date that payment is due
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where people receive more than one payment, DWP will, where possible, combine them to reduce the number of cheques that people receive
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cheques can be cashed at the post office or can be paid into bank accounts.
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third party collection arrangements will be the same as those for people with girocheques and order books.
A contingency plan will be in place for emergency payments for cheques that are late or lost. Individual benefit payments will still be administered by local pension service offices, disability benefit offices or job centres etc. These will be the contact points for queries or problems with missing cheques etc.
A notification will be sent out before the first cheque arrives, this will explain how the Exception Scheme payments will work and will give emergency contact details.
The Exception Scheme will be in operation from October onwards for new claimants. Existing claimants will transfer over by the end of April. The last order books will be issued in February; the last payments through this method will be made in April.
How to request payment through the Exception Scheme
RNIB has been advising people who don't think that they will be able to use post office card accounts or bank and building society accounts for payment of their pensions and benefits to inform DWP.
Following an initial letter from the Department for Work and Pensions requesting account details, many people who either didn't respond or who said that they wanted to keep their books or girocheques have received further letters and in some cases phone calls.
If you are re-contacted by DWP tell them again that you can't use the options available. Confirm that you wish to keep your order book or girocheques until they are phased out in April 2005 then would like to be paid through the Government's Exception Scheme.
If you experience any difficulties when requesting the Exceptions Scheme please contact RNIB on 0845 766 9999.
Similarly, if you have transferred to Direct Payments and are experiencing delays in the payment of your pension or benefits please contact Helen Dearman at RNIB on 020 7391 2083.