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VICTORIA – The Province is offering an incentive package that consists of a knapsack, warm socks, a toque and a pair of gloves to encourage income assistance clients to sign up for direct deposit, announced Claude Richmond, Minister of Employment and Income Assistance.
“Direct deposit works for our clients because it’s immediate and convenient – they no longer have to come to an office to pick up a cheque or wait for the mail to arrive,” said Richmond. “In some neighbourhoods, such as Vancouver’s Downtown Eastside, direct deposit works well at getting large amounts of cash off the streets on cheque issue day – and helps ensure that our most vulnerable British Columbians are not preyed upon because they have cashed their benefit cheque.”
The Ministry of Employment and Income Assistance has made a one-time investment of $200,000 to produce 10,000 cold weather kits that will be available on a first-come-first-served basis to clients who sign-up for direct deposit. The kits are being put together by the government’s Product Distribution Centre and contain clothing items of particular value to the ministry’s client group.
The incentive builds on the success of a pilot program offered in 2006. Currently, 60,224 clients – about 80 per cent of those that are eligible for direct deposit – are signed-up.
“Direct deposit has many other benefits for both clients and the Province,” said Richmond. “Clients avoid both the need to pay exorbitant cheque cashing fees and the stigma attached to cashing a ‘welfare’ cheque. The Province saves money on issuing cheques and a reduction in office visits.
“There is no downside to direct deposit – it’s a win-win situation – so if offering an incentive gets more clients to sign-on, I’m all for it,” said Richmond. “I think clients will find this to be a better way to receive their benefits so I’m confident more people will take advantage of the opportunity.”
The Ministry of Employment and Income Assistance is expecting the incentive program to increase direct deposit participation by five to 10 per cent. The incentive package will be available beginning Jan. 30, 2008.
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Communications Director 250 387-6489 |
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