Post Office card account (POca) benefit payments are to be extended for another year by the Department of Work and Pensions (DWP).
The POca payments were set to end in November this year, but it has now been extended for 12 months because of disruption caused by the Covid-19 coronavirus pandemic.
The extension is to ensure people affected have time to make alternative arrangements for their benefits payments, such as moving over to traditional bank accounts, reports the Liverpool ECHO.
The DWP had written to claimants make them aware that the scheme is closing. It is encouraging users to open a bank account if they are able - but people who can't access a bank account will be migrated to a new Payment Exception Service.
Minister for Pensions, Guy Opperman, said: "Whilst the vast majority of pensions and benefits are paid directly into peoples’ bank accounts, some people prefer to collect their payments over the counter at their local Post Office.
"This extra time means we can support our most vulnerable customers to move to the payment method that will suit them best – even if that means making sure they can still get cash via the Post Office using a card from the new Payment Exception Service."
Claimaints of tax credits, Child Benefit or Guardians Allowance need to provide HMRC with alternative bank details by April 5, 2022.
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