MP ANDREW Smith met Oxfordshire pensioners to discuss an overhaul of the state pensions system.

The Oxford East MP and Minister for Work and Pensions, told Oxfordshire Pensioners Action Group members, that a new IT system would save hundreds of millions of pounds a year.

He announced that the existing order books system, which is expensive and vulnerable to fraud, would be scrapped. Pensioners would continue to cash their pensions at post offices, but electronic cards would be issued instead of voucher books.

Speaking at Oxford Town Hall, St Aldate's, on Friday, October 4, Mr Smith said that improvements would be introduced from October 2003. Extra help would be given to the poorest. Special call centres would deal with inquiries from pensioners, and a pension credit system would be put in place for pensioners with savings or benefits.

Pensions officials would also work with councils and elderly groups, such as Age Concern. Pensions are set to go up by £100 a year for a single person and £160 for a couple next April. In future years, Mr Smith said the increase would be at least 2.5 per cent.

Michael Hugh-Jones, a member of Oxfordshire Pensioners' Action Group, said: "It was a very good talk -- I think everyone was reassured by it."