A REVOLUTIONARY new system for the payment of Social Security benefits looks set to be in place by the end of next year.

Claimants in Bolton will face drastic changes which will mean the end of giro cheques and order books.

The new system will involve the use of plastic cards like those used to withdraw money from bank cash machines.

Technology for the new scheme should be ready by next summer.

Post offices will be fitted out with the hardware to implement the system after that date.

A DSS spokesman said: "An alternative way of paying benefits is being seriously looked at which will replace order book and giro payments."

Under the new scheme people will take their cards to post offices which will be fitted with a computer linked to the DSS payment system.

Cards will be fed into the computer and the amount payable to each claimant displayed on a screen. Post office staff will still pay out the cash.

The DSS is currently negotiating with three consortium companies who have put in bids to develop the new technology to run the new system. When the bids are in, the proposals from each one will be looked at and the best accepted.

At this stage work would start on fitting post offices with the necessary equipment.

The spokesman added: "If the DSS go with the new system they will be looking to get it off the ground by mid-1996 after which there will be a 'roll out' programme nationally."

The directive to find alternative methods of payment came from Secretary of State for Social Security Peter Lilley in the summer.

The DSS spokesman said it was impossible to say how much the scheme would cost.

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