Universal
Banking Services at Post Offices
In May 1999 Ministers took the decision to move to Automated Credit
Transfer ("ACT") as the normal way of paying benefits (the published target in
the DWP's public service agreement was a goal to pay 85% of customers by ACT by
2005). The Government also indicated that benefit recipients should continue to be able to draw their cash
at post offices if they wished. The Performance and Innovation Unit (June 2000)
report recommended that the Post Office should develop the concept of a
Universal Bank. In working up proposals the "Universal Bank" concept evolved
into "universal banking services at post offices" by the end of August 2000. The
migration to ACT began in April 2003 and was concluded during 2005.
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The Performance and Innovation Unit Report
What are Universal Banking Services?
These services encompass access at post offices to the banks'
own basic bank accounts; and the Post Office card account ("POCA")- a simple account
exclusively for benefit recipients who are either unable or unwilling to open
even a basic bank account, allowing benefits claimants to access their benefit
in cash at post offices via a Post Office account instead of an order book or
giro.
The intention is that this account should be a stepping-stone to financial
inclusion (i.e. over time users of POCA's will migrate to using bank account
services provided by financial institutions). Anyone on benefits is eligible for
a POCA and there is no further eligibility criteria or a cap on POCA numbers.
The emphasis is on ensuring each customer has the best account for his/her
individual circumstances. Whatever type of account is used, Government remain
fully committed to meeting the Prime Minister's pledge that those who wish to do
so will so will continue to be able to get their benefits in cash in full at
post office branches.
Objectives of
Universal Banking Services
The programme had the following
objectives:
-
the modernisation of welfare payments;
-
to increase financial inclusion;
-
to provide a means of generating replacement business for the Post Office network.
In pursuing these objectives, a particular aim was to deliver the Government's commitment that:
-
after the move to ACT people will still be able to collect their benefit cash in full at a post office.
In delivering the programme, a further objective was:
-
to maintain standards of customer service and customer perception in relation to payment of benefits and tax credits.
Who is responsible for the Universal Banking Service
programme?
The Department of Work and Pensions (DWP) coordinated the work to modernise
the payment of pensions and benefits along with the introduction of
universal banking services at post offices. The DTI are responsible for
ensuring the continued success of the UBS project and the DWP have
responsibility for getting all benefits paid efficiently.