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UK smartcard project could fold

By Sarah Left

Published: 5 May 1999 16:58 BST

A major UK government initiative to enable benefits to be paid via smartcards at Post Offices could be scrapped, according to reports in the Financial Times.

The PFI (private finance initiative) project is intended to link up the Benefits Agency with Post Offices, giving claimants a simpler way to get their money.

ICL was chosen two years ago to lead a project consortium. It has invested nearly £200m in the project so far.

An ICL spokesman said: "We're still hoping for a successful conclusion to all this. There is a government review that's been ongoing for some 12 months now. That is a long time to review it."

He continued: "The infrastructure is ready to roll, and it's been smartcard enabled since day one. We have over 200 Post Offices that are now online in a trial and people are receiving their benefits this way."

The spokesman said the final decision on the project's fate is "imminent".

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