Big change for benefit claimants to avoid payments being stopped next month
THOUSANDS of benefit claimants have just one month to take action to prevent their payments being stopped. Brits who use a Post Office card account need to make a change before November 30 if they claim tax credits, child benefit or guardian’s allowance. The government is phasing out Post Office card accounts before closing the […]
THOUSANDS of benefit claimants have just one month to take action to prevent their payments being stopped.
Brits who use a Post Office card account need to make a change before November 30 if they claim tax credits, child benefit or guardian’s allowance.
The government is phasing out Post Office card accounts before closing the scheme next year.
From December 1, HMRC will stop making payments of child benefit, guardian’s allowance and tax credits into the accounts.
The Post Office accounts are a way for people to get their benefits and pension payments without having a bank account.
But they will close in November next year, and the government is stopping HMRC payments to them in the meantime.
If you get any of the above benefits, you should set up a new bank account before November 30 and let HMRC know the details.
Otherwise, payments will be suspended until you let the tax office know your bank details.
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The closure of the accounts was due to happen this year but the government has extended them until 2022.
The scheme has been extended due to the disruption caused by the Covid pandemic, to give users more time to make new arrangements.
Customers who currently receive payment into a Post Office card account will be sent a letter telling them the service is ending.
The DWP is encouraging those who are able to open a bank account to do so before the new deadline of November 2022.
If they can’t, they will be transferred to the Payment Exception Service, which allows them to choose how they receive their payments.
This will allow access to benefits, such as Universal Credit and the State Pension, through the PayPoint network.
Users will be automatically moved to this service unless they provide the DWP with new bank account details before the deadline.
Around 382,000 people use a Post Office card account, which can be used to withdraw funds with no fees or charges.
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