Address:
Official Correspondence Team
People and Communication.
Finance Group
Ground Floor, Quarry House
Quarry Hill, LEEDS
LS2 7UA
Email: xxxxxxxx.xxxxxxxxxxxxxx@xxx.xxx.xxx.xx
Website:
www.dwp.gov.uk
Date:
10 January 2017
Brian Martin
Sent via email
Dear Mr Martin
Freedom of Information Act - Request for Information
Our Reference: FOI 4415 Thank you for your Freedom of Information request received on 21 November 2016. You
asked:
‘This organisation assists new refugees in claiming benefits, principally JSA pending
them finding a first job.
DWP benefits are normally paid into a bank account - but banks will often not open a
bank account for refugees until refugee can produce letter from JSA benefit centre
confirming JSA is in payment.
In the past claimants could obtain payments via a Simple Payment card for the first few
weeks, until such time as they received JSA decision letter which they could take to the
bank to open a new bank account.
However in recent months our local DWP office has been ignoring requests for
payments via a Simple Payment card and has instead asked new refugees to provide
sort code and account no of a 'friend' - stating that the benefit will be paid into the
friend's account until such time as claimant has his own account. Can you please
provide details about this new policy?
Why was the policy introduced (e.g. to save on DWP charges to company running
Simple Payments card); on what date did this policy change - to pay initial benefit into a
friend's account - take place; does the new refugee without a bank account still have the
option of requesting payments via Simple Payment card; is this new policy mandatory
and implemented via regulations or policy only; what payment options are available if
new refugees have no local 'friends' who can provide such a service; and can you
please provide a copy of the current guidance issued to staff regarding requests for
Simple Payment card accounts and the use of 'friend's' bank accounts as an alternative
in such situations.’
Response
A personal bank account is the preferred method of payment for Job Centre Plus
customers as, when employment is secured, wages can be paid directly into their
account and this avoids any future disruption and promotes financial stability. The
Simple Payment Service is not a transactional account and can only be used to receive
payments directly from government departments. Many basic bank accounts will also
allow customers access to additional services such as setting up direct debit instructions
which can assist them to budget effectively and potentially access savings through
reductions in household utility bills.
Although a letter from DWP confirming entitlement to benefit can be used to open a
basic bank account, this is not usually the only acceptable document. Further
information, including a list of alternative documents which can be used to open a basic
bank account, can be found at the Money Advice Service.
https://www.moneyadviceservice.org.uk/en/articles/basic-bank-accounts
The Simple Payment Service has only ever been intended for use by customers who
cannot open or operate a bank, building society or Post Office card account. The policy
relating to this has not changed. Making customer payments via the Simple Payment
Service is considerably more expensive than making payments directly into a personal
bank, building society or credit union account; however, the service is available in
emergency cases where it is not possible to use one of these options.
Current guidance instructs advisers to hold a method of payment discussion with all new
customers to ascertain their payment details. Payment into a third party account is
permitted on the customer’s instruction but is not mandatory. Following this discussion,
customers who are unable to access any other method of payment will be able to
receive payment via the Simple Payment Service.
If you have any queries about this letter please contact us quoting the reference number
above.
Yours sincerely
Official Correspondence Team
People and Communication
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Your right to complain under the Freedom of Information Act
If you are not happy with this response you may request an internal review by e-mailin
g freedom-of-
xxxxxxxxxxxxxxxxxxx@xxx.xxx.xxx.xx or by writing to DWP, Central FoI Team, Caxton House, 6-12 Tothill
Street, London. SW1H 9NA. Any review request should be submitted within two months of the date of this
letter.
If you are not content with the outcome of the internal review you may apply directly to the Information
Commissioner’s Office for a decision. General y the Commissioner cannot make a decision unless you
have exhausted our own complaints procedure. The Information Commissioner can be contacted at: The
Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow Cheshire SK9 5AF
www.ico.gov.uk