1.18 The decision to cancel the Payment Card project was the culmination of an Inter-Departmental review of options, beginning in early 1998. The Treasury and the Departments of Trade and Industry and Social Security, as well as Pathway and the two principal purchasers, were all involved in developing the way forward. Their objectives agreed by ministers collectively were to:
■ aim to protect a nation-wide network of Post Offices. This was defined as avoiding significant post office closures, though in the longer term it could mean changing the shape of the network so services could be accessed in different ways;
■ pay social security benefits in a way that is as cheap, efficient and as fraud free as possible (taking into account the costs of getting cash into claimants' hands) and consistent with welfare reform;
■ modernise the delivery of government services and information more generally taking full advantage of new technology;
■ improve access to basic financial services, including banking services, for poorer members of the community and the socially excluded;
■ maintain a thriving IT sector in the UK, in which ICL is a key player, while ensuring that risks transferred through Private Finance projects do not end up with the taxpayer; and,
■ deliver best value overall for the taxpayer.
1.19 The three main options were continuation or cancellation of the entire project, covering both the automation of post offices and the introduction of the Benefits Payment Card, or continuing with post office automation only. Figure 10 shows the financial evaluation of these alternatives, as compared to the existing arrangements. Non-financial factors were equally relevant and were taken into account.