Post Office admits benefit system failures

The Post Office payment system is attracting criticism

By Jennifer Clarke BBC Radio 4's Money Box

The Post Office has admitted to BBC Radio 4's Money Box it will have to change its new system for paying benefits into bank accounts to meet the Disability Discrimination Act.

It is just six weeks since the government launched its ambitious programme to encourage 13m benefit claimants to move over to "direct payment".

We introduced the services knowing that we would have to make reasonable adjustments

Graham Halliday, Post Office

Under the new system, order books and giros are being phased out, and pensions and other benefits are being paid directly into a bank account, saving the government money and tackling fraud.

The government has always insisted people will still be able to access their cash at the Post Office by using a Post Office Card Account and PIN code.

But the Post Office has now admitted it knew the system it designed would not be fully accessible to disabled customers.

"Part of the planning"

Director of Banking Graham Halliday told Money Box:

"We introduced the services knowing that we would have to make reasonable adjustments to comply with the Disability Discrimination Act."

He said it was necessary to meet the government's deadline for the start of the new service.

The Post Office needs to look again at whether the system they have in place fully meets the requirements of the DDA

David Sindall, Disability Rights Commission

"We introduced it in a way that would enable us to go live with the service in April in the timescale that we had.

"That was part of the planning that we employed."

Graham Halliday was responding to criticism from the Disability Rights Commission that the Post Office Card Account did not take enough account of the needs of disabled people.

DDA requirements

David Sindall is the DRC's Head of Practice Development.

"One of the requirements of the DDA is not to provide a service to disabled people that makes it unreasonably difficult for them to use that service.

"There is also a requirement for service providers to review their policies, practices and procedures when they are introducing new systems.

"And it would seem at this stage that the Post Office needs to look again at whether the system they have in place fully meets the requirements of the DDA".

Legal action

The DRC is now working with the Post Office and hopes to find workable solutions to all the problems identified, but says it cannot rule out legal action if a satisfactory answer cannot be agreed.

The Post Office had already admitted that its 38,000 PIN keypads will have to be adapted because many people with visual and physical disabilities cannot use them.

But there are also accusations that the system discriminates against people with neurological conditions like Alzheimer's because of the need to use a card and PIN.

The National Autism Society told Money Box it was not happy with the system either.

Age Concern and Help the Aged are also worried that people who occasionally ask someone else to collect their benefit for them will no longer be able to do so.

At the moment they simply ask the person collecting to countersign the relevant week's page in their benefit book.

But under the new system pensioners will only be able to authorise one other person to have access to their account by giving them an extra card and pin.

Scheme a "shambles"

Conservative Shadow Work and Pensions Secretary Oliver Heald told Money Box the introduction of the scheme has been "a shambles", and criticised the government's lack of preparation.

"They thought it will be simpler if everybody has direct payment and they have been quite surprised by the reaction.

"I have been asking about these vulnerable people and the answer comes back: oh well, we will introduce a system for them when it is required.

"Well of course it is required now. So where is it? It is a shambles".

Cross party political pressure is building too.

More than 360 MPs have signed an Early Day Motion calling for simplification of the Post Office Card Account.

And next week the influential Trade and Industry Select Committee will start its own investigation into the introduction of the new system.

BBC Radio 4's Money Box was broadcast on Saturday, 17 May, 2003 at 1204 BST.