Sub-postmistress Joan Smith (left) with Ruth Riddell, counter assistant show the new smart card and swipe machine.

WE are all so used to the idea of books to collect our benefits, pensions and children’s benefits that any move to change the system presents the elderly, in particular, with a certain amount of alarm.

But in this age of plastic cards for everything - from banking and shopping purposes to library and leisure club membership - it is inevitable that the Post Office and social security authorities join the modern age and give us “smart cards” to pick up our various benefits at our local PO.

“Direct Payment”, as it is called, means that the Government pays pensions, benefits and allowances directly into accounts. It began at the beginning of last month and will take an estimated two years to change everyone over. Those who receive pensions or benefits need do nothing until they are notified by the Department of Work and Pensions. When you receive the letter you are asked to fill in various details in order to effect the transfer to the Direct Payment system.

Sub-postmistress at Merkinch, Joan Smith, says, “People need not worry about this. If they have any difficulty, we can advise and help them - and they can phone free from here with any queries.”

There are three ways you can use the new system:

• You can still collect your benefit/pension from the post office as you do at present, only you swipe your card and enter a four-digit personal identification number (PIN) instead of signing your book and handing it over.
• You can open a basic bank account with any of various partner banks - Alliance & Leicester, Cahoot, Co-op Bank, Lloyds TSB or Smile). These banks all allow you to withdraw money from your account at the post office. Of course, if you already have a current account with any high street bank you are able to have pensions etc paid directly into that, but you won’t necessarily be able to get cash through the PO.
• You can open a Post Office card account.

If you choose this last type of account, you can draw just the amount of money you need at any PO. If you leave money in this account it will not, however, earn any interest (no big deal these days!)

If someone regularly cashes your pension/benefit for you, you can get an extra card for them - and they will have their own PIN number. If you choose to work through a bank account you would need to arrange with them to open a joint account with your helper.

However, until you receive a letter from the Department of Work & Benefits YOU NEED DO NOTHING. And remember, when you do receive it, there is plenty of help available at Merkinch Post Office.

You will have noticed that the swipe machines have been installed on the counter, and some people have already changed over to the Direct Payment system.
Joan Smith says that if local people have continuing worries over the new Direct Payment system, she will run an Open Evening so that people can raise their problems and be reassured.
Joan took over Merkinch Stores six years ago and has been sub-postmistress for five years, come July.
The Post Office and the Government hope that the new system will streamline the benefits system and make it less open to fraud.
The PO has said they will have to close 3000 branches throughout the UK over the next few years. And although they promise that 95% of people in urban areas will be no more than a mile away from their nearest office, the only way to ensure the future of your local branch is to use it.

The following will be paid by the new system: Attendance Allowance, Bereavement Benefits, Child Benefit, Disability Living Allowance, Incapacity Benefit, Income Support, Industrial Injuries Scheme Benefits, Invalid Care Allowance, Jobseeker’s Allowance, Maternity Allowance, Severe Disablement Allowance, State Pension, War Pension, Widow’s Benefit.