Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the potential merits of the use of alternative currencies for benefits payments.

Customers living abroad and in receipt of payments delivered by the Department for Work and Pensions can have their payments made either:

• Direct into a UK bank or building society account in sterling; or
• Direct into an overseas account in the local currency;

All payments made to overseas customers, whether in sterling or local currency, are subject to fluctuating exchange rates. However, for payments made directly to overseas accounts in the relevant local currency, the Department has negotiated a competitive exchange rate which is more favourable that that available on the open Market.