The Department for Work and Pensions (DWP) has announced that benefit claimants who currently use a Post Office Card account (POCa) to collect their payments who are unable to provide a bank, building society or credit union account will be moved to a voucher-based scheme.
The Payment Exception service currently provides access to payments via the PayPoint network, however, they will also be available through the Post Office network from August 31, 2021.
DWP said: "Customers will start to be moved to the Payment Exception service from the end of August 2021 if they haven’t yet contacted DWP with new account details."
The UK Government’s contract with the Post Office for its POCa service will end on November 30, 2021 and a gradual phasing out of services is almost complete, which means the option will no longer be available from December 1, 2021.
POCa has been a way for benefit claimants to collect their cash since 2003 and was introduced to provide a “simple” banking facility for those without access to regular bank accounts.
At its peak, around 900,000 people across the UK were using the Post office to collect payments, but over the last three years the DWP and HM Revenue and Customs (HMRC) have been writing to claimants and encouraging them to have benefits and pensions paid directly into a bank account instead.
The POCa service closed to new DWP benefit claimants, including people who had reached State Pension age and were eligible to claim, on May 11, 2021.
Customers can phone the DWP Customer Service centre on 0800 085 7133 (opening hours are 8.30am to 4.00pm, Monday to Friday) to provide new account details for their benefit or State Pension payments.
What will happen to my benefits or State Pension payments after November 2021?
Your benefits or State Pension payments will not stop, and your payment dates will not change.
The only change is that you will no longer be able to use a Post Office Card account to withdraw your money.
If you are still using a Post Office account to collect Universal Credit, Tax Credits, Jobseeker’s Allowance, Personal Independence Payment (PIP), Disability Living Allowance (DLA), Employment Support Allowance (ESA), Child Benefit or any other benefit from DWP or HMRC, you should open a bank account as soon as possible and inform the relevant department of the change in payment details.
You can find out more about the letter you will receive and the steps you need to take on the Post Office website here.
You can also contact the Post Office contact centre on 0345 722 3344.
What do I need to do now?
You will have three options to receive pensions and benefits payments after November 30:
1. Use an existing account you have with a bank, building society or credit union
2. Open an account with a bank, building society or credit union
3. Payment Exceptions Service - if you are unable to use or set up a bank, building society or credit union account, the UK Government will get in contact with you about this option
How to close a Post Office Card account
Eventually, you will also need to tell the Post Office to close your Card account.
You can do this by completing an account closure form at your local Post Office, or calling 0345 722 33 44.
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