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Robertshaw Says The Gov Can Save £900,000


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The idea is to pay all pensions and benefits into a bank account instead of people getting paid at Post Offices, said this would help people who couldn't get down to the Post Office, so the next question is, how do they get their money from the bank?.

It is easier to get it from the Post Office, because people can delegate somebody to pick up their pensions for them,it's done on the books, now would the banks do the same?,to some people it is the only time they can get out of the house and meet their friends,plus do their shopping,why change something which has worked for years, any thoughts on this.

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The idea is to pay all pensions and benefits into a bank account instead of people getting paid at Post Offices, said this would help people who couldn't get down to the Post Office, so the next question is, how do they get their money from the bank?.

It is easier to get it from the Post Office, because people can delegate somebody to pick up their pensions for them,it's done on the books, now would the banks do the same?,to some people it is the only time they can get out of the house and meet their friends,plus do their shopping,why change something which has worked for years, any thoughts on this.

How much will the banks charge government to process these payments into people's accounts?

It won't be free of charges

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The idea is to pay all pensions and benefits into a bank account instead of people getting paid at Post Offices, said this would help people who couldn't get down to the Post Office, so the next question is, how do they get their money from the bank?.

It is easier to get it from the Post Office, because people can delegate somebody to pick up their pensions for them,it's done on the books, now would the banks do the same?,to some people it is the only time they can get out of the house and meet their friends,plus do their shopping,why change something which has worked for years, any thoughts on this.

 

It's a classic Manx government 'saving' isn't it? You do something that actually costs another bit of government money, but because it comes off your budget, it's terribly virtuous. There are all sort of practical reasons why it's a bad idea as well, and you would like to know what the banks will actually charging and whether that amount will be fixed for ever or be hiked up once the possibility of going back to using the Post Office is no longer available.

 

Edited for clarity

Edited by Roger Mexico
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How much will the banks charge government to process these payments into people's accounts?

It won't be free of charges

 

Snap. Actually after posting I wondered if perhaps such bank charges (many of these payments are already made direct to bank) might be coming off the Treasury budget rather than the DSC's and that could be another false 'saving'.

 

There's also the fact that they already seem to be adopting this policy for new claimants without any consultation - at least according to Lonan3 who was in that position with regards to a pension.

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Having the benefits/pensions paid straight into bank accounts would and should be much more convenient as they wouldn't have to collect from post office to then pay into their bank accounts. It's just cutting out the middle man - an unnecesary layer of bureaucracy.

Edited by Trueblood
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Having the benefits/pensions paid straight into bank accounts would and should be much more convenient as they wouldn't have to collect from post office to then pay into their bank accounts. It's just cutting out the middle man - an unnecesary layer of bureaucracy.

 

Spot on. A sensible saving, I do agree about the social contact side, but there's always the gossip to be had in Shoprite etc.

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It's a classic Manx government 'saving' isn't it? You do something that actually costs another bit of government money, but because it comes off your budget, it's terribly virtuous.

 

True, but what's the betting that Robertshaw, who, since he first reared his head on here, has developed having only the most superficial grasp of things into something of an art form, has in a characteristic rush to promote himself simply misinterpreted his civil servants' talk of a saving in their department?

Edited by VinnieK
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Why would the recipients bank charge? Child benefit is already paid direct to bank accounts at no charge.

Having the benefits/pensions paid straight into bank accounts would and should be much more convenient as they wouldn't have to collect from post office to then pay into their bank accounts. It's just cutting out the middle man - an unnecesary layer of bureaucracy.

 

The immediate question is not whether the recipients bank would charge them, but how much the banks would charge the government for making these extra payments and whether that has been taken into account in the alleged 'savings'. There's also the point that all they may be doing is taking money from a supplier where the government gets some of it back in profits[1] to another supplier where the money goes to those paragons of virtue and efficiency, the banks.[2]

 

But there is a longer term worry from the recipients' side as well. We keep on being told that the end of free bank accounts is going to happen sometime and in that case people will be having to pay extra to receive their pensions and benefits - the very people who can least afford extra costs.

 

What is more, some people don't actually have bank accounts and these tend to be the elderly and the poorest who can have problems even opening them[3]. Even if they do have a bank account they are obviously poor customers from the point of view of the banks and many may be liable to accidently fall into debt etc.

 

With regard to your second point, as far as I'm aware you can arrange for pensions and benefits to be paid directly into a bank at the moment and many people do. I think there may be an exception for some short-term benefits where the cost of setting up bank payments would actually be greater than just issuing the payment to be paid via the Post Office (so those would presumably be an extra cost though not a great one). What is being proposed here is that all such payments would have to made into a bank account.

 

 

[1] Presumably some also goes to the people running sub post offices as well. But that helps support the network and keeps other government services available.

 

[2] Admitted banks have been known to keep former Ministers off the streets by giving them local directorships, but the rest of us may not regard that as sufficient justification.

 

[3] This usually involves a deeply embarrassed bank clerk having to inform an elderly person who has known them by first name since they were in nappies that "Know your customer" doesn't mean that actually knowing your customer is enough, but that they have to produce some documentation, such as a passport, that they have never possessed.

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The idea is to pay all pensions and benefits into a bank account instead of people getting paid at Post Offices,.....why change something which has worked for years, any thoughts on this.

 

Because it's costing £900,000 a year?

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