After regulation 16 of the principal regulations there is inserted the following new regulation:—
Payment of certain benefits by direct credit transfer
(16A)
(1) Subject to the provisions of this regulation, any benefit specified in paragraph (2) may, on the claimant's application and with the consent of the Secretary of State, be paid by way of automated or other direct credit transfer into a bank account or other account—
(a) in the name of the beneficiary, or his spouse, or a person authorised to receive benefit on behalf of the beneficiary, or
(b) in the joint names of the beneficiary and his spouse, or of the beneficiary and a person authorised to receive benefit on his behalf.
(2) The following benefits (including, where appropriate, increases of them) are benefits specified for the purposes of paragraph (1)—
(a) retirement pension of any category;
(b) widow's benefit (which in this regulation means a widowed mother's allowance under section 25 of the Act, a widow's pension under section 26, and benefit by virtue of section 39(4) corresponding to a widow's pension or a widowed mother's allowance);
(c) child's special allowance;
(d) attendance allowance;
(e) mobility allowance;
(f) industrial death benefit except where it is being paid at the rate referred to in section 68(1) of the Act;
(g) age addition if payable together with any benefit which is also paid under the provisions of this regulation.
(3) An application for benefit to be paid in accordance with paragraph (1)—
(a) shall be in writing on a form approved for the purpose by the Secretary of State or in such other manner, being in writing, as he may accept as sufficient in the circumstances; and
(b) shall contain a statement or be accompanied by a written statement made by the applicant declaring that he has read and understood the conditions applicable to payment of benefit in accordance with this regulation and in particular that he has understood the effect that paragraph (8) would have in the event of any overpayment of benefit.
(4) Benefit shall be paid in accordance with paragraph (1) within 7 days of the last day of each successive period of entitlement of 4 or 13 weeks as may be provided in the application.
(5) Paragraphs (10) to (12) of regulation 16 shall apply to payment of benefit under this regulation as if the reference in each such paragraph to the appropriate day of the week for payment were a reference to—
(a) if the benefit is mobility allowance, Wednesday,
(b) if, when the application for payment under this regulation is accepted, benefit is already being paid weekly, the day of the week on which it is being so paid,
(c) in any other case, the day of the week specified in paragraphs (5) to (8) of regulation 16 in relation to the benefit in question,
and in each of those paragraphs as so applied the expression “ the next such appropriate day ” shall be construed accordingly.
(6) In respect of benefit which is the subject of an arrangement for payment under this regulation, the Secretary of State may make a particular payment by credit transfer otherwise than is provided by paragraph (4) if it appears to him appropriate to do so for the purpose of—
(a) paying any arrears of that benefit, or
(b) co-ordinating periodic crediting in respect of different benefits, or in respect of a benefit and an increase thereof, or
(c) making a payment in respect of a terminal period of an award, or of the period covered by the arrangement, where that terminal period is one of less than 4 weeks or 13 weeks, whichever is applicable under the arrangement,
or for any similar purpose.
(7) The arrangement to receive benefit in accordance with this regulation may be terminated—
(a) by the beneficiary or a person acting on his behalf by notice in writing delivered or sent to an office of the Department of Health and Social Security, or
(b) by the Secretary of State if the arrangement seems to him to be no longer appropriate to the circumstances of the particular case.
(8) In relation to payments of benefit which in pursuance of this regulation have been credited to a bank or other account under an arrangement made with the agreement of the beneficiary, if in respect of that arrangement he made a statement in accordance with paragraph (3) that he had read and understood the conditions applicable to payment of benefit in accordance with this regulation, section 119 of the Act shall have effect as if sub-section (2) and the words in sub-section (2A) from “unless it is shown” to the end of that sub-section, (repayment of overpaid benefit not required where due care and diligence to avoid overpayment is shown), were omitted.
(9) Where the Secretary of State certifies that it appears to him—
(a) that an overpayment or any specified part thereof is not materially due to the arrangement to receive benefit provided for in this regulation; or
(b) that in the particular circumstances of the case it would be inappropriate to apply the provisions of paragraph (8) to an overpayment or any specified part thereof,
the question whether repayment of the overpayment or, as the case may be, the specified part of the overpayment is required shall be determined in accordance with section 119 of the Act without the application of paragraph (8) of this regulation.