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Wales Online
Wales Online
National
Linda Howard & Ryan O'Neill

Rule change could see tax credits and child benefit claimants lose benefits in April

People earning certain benefits in the UK have been warned they could have their payments stopped in two months due to an upcoming rule change.

Up until now, people claiming tax credits and child benefit have been able to receive their payments into a bank, building society, credit union account or Post Office card account.

However, from April 6, 2022, HMRC will stop making these payments into Post Office card accounts, reports the Daily Record.

HMRC is urging account holders to contact them as soon as possible to update their bank account details to continue receiving payments without disruption. It said previously that customers can choose to receive their benefits and tax credits payments into a bank, building society or credit union account.

On February 9 HMRC tweeted advising claimants that they will need to switch from a Post Office card account in order to avoid having payments paused when the rule change comes in on April 5:

HMRC has been contacting customers since last summer to encourage them to take action and avoid potential disruption to payments from April.

It has also updated guidance on payments on the GOV.UK website and warns: “If you do not give HMRC your bank, building society or credit union account details by 5 April 2022, your payments will stop.”

How do I update my details?

Child benefit claimants can use their personal tax account to provide revised account details and change their bank account details via gov.uk or by contacting the child benefit helpline on 0300 200 3100.

Tax credits claimants can change their bank account details by contacting the tax credits helpline on 0345 300 3900.

HMRC said that anyone who cannot open a bank account should contact them as soon as possible.

Commenting on the closure of accounts, Myrtle Lloyd, HMRC’s Director General for Customer Services, said in November: “Time is running out for customers who have been using a Post Office Card account to get payments from us. They need to give us their new account details now to avoid their payments being suspended.

“They can update their details online or by calling us, and they need to be very careful to avoid handing over personal details to fraudsters contacting them claiming to be from HMRC.”

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