Paypoint instead of girocheques ????????

[Amethyst]

Apparently Citi have won a contract from 2012 for 7 years

Simon Gompertz notebook: Blow for Post Office with end of benefit cheques

A new service to replace benefit cheques has been awarded to Citibank which will use PayPoint outlets in shops to deliver the money.

250,000 benefit claimants who receive their money by cheque, cashed the Post Office, are affected.

The decision is a blow to the Post Office which had tendered for the contract.

[leclerc]

Re: Paypoint instead of girocheques ????????

http://www.independent.co.uk/news/bu...t-2231109.html

Do benefits now get paid in cheque form? I assumed it was direct payment these days?

[Amethyst]

Re: Paypoint instead of girocheques ????????

DWP Decision




Press release : 3 March 2011


PAYPOINT CHOSEN AS PAYMENTS NETWORK FOR
CASH PAYMENT OF BENEFITS

Decision by DWP will benefit local retailers and benefits claimants

PayPoint, the UK's leading branded cash payments network, welcomes today's announcement from the Department for Work and Pensions (DWP) that PayPoint has been named preferred supplier to be the retail payment network for the new service which is to replace green 'Giro' cheques for cash benefits. The service will be delivered together with the DWP's selected banking partner Citibank, whom PayPoint understands the DWP will ask to act as prime contractor.

This service will build on PayPoint's ability to pay out cash through its retail network, which has proven attractive to both clients and retail agents since it was launched last year. It is intended that this service will be delivered across the full range of benefits for customers who do not have bank or Post Office card accounts. Similarly to the cheque payments which are being replaced, customers will be supplied with a document to confirm their entitlement that can be cashed in a PayPoint retail outlet, but this is the first time that PayPoint has provided a service to the DWP.

As this is a new service, volumes are difficult to predict. PayPoint expects to spend most of next financial year preparing for the start of the service, for which the DWP will pay set up fees. Thereafter, revenue should accrue to PayPoint's established business, helping maintain the growth forecast by the market.

Dominic Taylor, Chief Executive of PayPoint, said: "We are delighted that the breadth, quality and efficiency of the PayPoint retail network has been recognised by DWP and look forward to working with the Department to deliver this very exciting and socially important initiative.

"The retailers who make up our network work incredibly hard to provide their service at the very heart of their communities, opening from early morning to late at night, seven days a week, including bank holidays. The proposed new system for cash payment of benefits through our network will make it far easier for the recipients to access their own money at locations and times that are more convenient for their circumstances and lifestyles and builds on their trust in the PayPoint brand and service, which millions of cash economy consumers use every week for their essential payments."

ENDS.

[Amethyst]

Re: Paypoint instead of girocheques ????????

Contrary to the government desperately trying to get us to believe we HAVE to have a bank account we DON'T !!! Girocheques are still an option for EVERYONE and the DWP have been trying to hoodwink people into opening bank accounts for the last few years.

This gets them forced onto bloody plastic.

POCA is the only other option at the post office and thats also run by Citi. Post Office Card Account (Sponsor Bank 'Citibank NA')


FFS.

[leclerc]

Re: Paypoint instead of girocheques ????????

Paypoint chosen for benefits payments | Stock Market Wire

Paypoint CEO Dominic Taylor said: "We are delighted that the breadth, quality and efficiency of the PayPoint retail network has been recognised by DWP and look forward to working with the Department to deliver this very exciting and socially important initiative."
------------------------------- merged -------------------------------
Citibank win new welfare payment service contract - DWP

Statement from DWP.

[Jadkins]

Re: Paypoint instead of girocheques ????????

The DWP do try and push for people to receive their payments into their accounts as it is a safest method. If a person for what ever reason refuses to have their benefits paid into an account then we can't force them, it's illegal. We can only advise on which is the safest method. The alternative is that they come into the office at a set time to collect their benefit.

[Amethyst]

Re: Paypoint instead of girocheques ????????

Thanks Jadkins Good to know it is still an option to receive the money direct from the DWP without going through Citibank's coffers. I wish the POCA was pushed more though to claimants. I am more than happy with the post office card account, although I do have a post office very nearby. If the post office network extended cash machines or the poca was able to be used on the link network that would improve take up of that side I feel and I'd much rather have benefits paid to a POCA where they are completely safe from bank charges, accidental overspends, continous card payments you are unaware of etc etc. With the removal of girocheques I do think that paypoint cards is a good option for accessibility. I pay water, electric, gas and tv licence in co-op through paypoint and keycards so withdrawing at the same time wouldn't be much of a problem.

I receive Child Benefit and Child Tax Credits to my POCA. Wages, child maintenance etc go into my basic bank account now and I do find it worrying where I am at with things money wise in the bank as it is just too easy to slip up and get charged. The POCA I am 100% comfortable with as I know it is only me can withdraw it, and thats all I can do, cash in pocket is much easier to keep track of (well would be if the kids didn't keep swiping it for sweets lol).

Going in to the DWP office wouldn't be an option for many. For me it is a £3.50 bus ride away and although they can reimburse you (whilst growling at you) you have to have the money up front to pay it.