The Death of the Giro
June 24, 2008 at 3:51 am (benefits, elderly, older people, social issues, work)
Tags: benefits, Department for Work and Pensions, direct payment, dwp, James Plaskitt, National Pensioners Convention, older people, Pension, pensioners, Royal Mail, uk, United Kingdom
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I was minding my own business, listening to Moneybox on the Radio at the weekend - when I heard that Benefits Cheques are to be phased out.
The Giro is on its last legs.
I don’t want to be pessimistic at all, in the face of the minister responsible James Plaskitt, being so assured that he would not be completely phasing out the current system until
‘…we are satisfied we have moved everyone onto a system and it is working for them.”
Of course, along with this, he sets a deadline of 2010.
Yes, it’s more expensive to send out cheques and plastic cards and bank accounts are a lot more convenient for, probably, 99% of people.
Yes, Giros have been targeted by fraudsters and they do get ‘lost in the mail’ with alarming frequency (surely, an issue for the Royal Mail - but I won’t get distracted here).
But plastic cards with PIN numbers don’t address a large amount of the people I work directly with who have different carers collecting their money for them - who aren’t allowed to be given PIN numbers due to concerns relating to financial abuses.
They don’t account for people who have grown up an a generation before these systems of cash cards became a widespread convenience.
New pensioners will find these new systems easier and more convenient, but I am more concerned about the older pensioners - 85+ who are not accustomed to remembering or using PINs to access their benefits and pensions - and sometimes not used to or wanting bank accounts at all.
Its all very well the minister saying that these issues will be ’sorted out’ by the time the new systems are in place, but it would have been helpful to know what means are going to be used to combat the concerns and fears before announcing the end of the cheque-based system of payments.
Moving onto the Direct Payment Scheme made the Benefits system easier for a wide-range of people but for some it was made almost inaccessible. It has possibly led to less independence rather than more as people were unable to access their own money through either not remembering PIN numbers or not having any family whom they could give those PIN numbers to, in order to collect the money for them.
The National Pensioners Convention has picked up on these changes
‘Dot Gibson, NPC vice president (who is one of the 400,000 pensioners currently receiving her pension by cheque) said: “For many older people, the cheque payment enables them to easily get a friend or neighbour to collect their pension on their behalf. It’s a flexible approach that helps those who may not always be able to get to the post office in person.”
“Lots of older of older people don’t have, don’t want or cannot open a bank account – but they want to keep using their post office to collect their pension. It’s outrageous that the government is now making it difficult for pensioners to get at their own money. The decision to withdraw the cheque payment is yet another attack on both the pensioner and the post office.” ‘
And they recollect an assurance that James Plaskitt himself gave in 2006
“On 15 February 2006, James Plaskitt MP, Department for Work and Pensions minister told the House of Commons: “It is not the Department’s policy to stop an individual’s pension payments if he or she refuses to receive pension payments by the direct payment method. Customers who do not provide account details are paid by cheque.”
I’m not against change for the sake of it, but I think a lot more explaining needs to be done before we can happily wave goodbye to a system than is a lifeline for a lot of older people - particularly those without friends and family members to support them.



