The Department for Work and Pensions (DWP) has started sending letters to customers who are still receiving benefits or State Pension payments through a Post Office card account (POca).
People are being informed that the POca service is closing later this year and being asked for their bank account details so their payments can be paid into this alternative account.
For those who don’t have a bank account, they will automatically be moved over to a new system called the new Payment Exception Service (PES). This will deliver benefits using a digital voucher which can be received via a text message, an email or a re-useable plastic card.
People moved over to the new PES can continue to use the Post Office to collect their money with the added benefit of being able to access their benefits or State Pension from over 28,000 PayPoint outlets across the country.
The DWP will look to move everyone off the Post Office card account by the summer.
There is also a dedicated DWP customer service centre helpline for those who need help and guidance about closing their Post Office account and setting up a bank account.
If you need help with the switch contact DWP on:
- Telephone - 0800 085 7133
- Textphone - 0800 085 7146
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 State Pension paid directly into a bank account instead.
What will happen to my benefits or State Pension payments after November 2022?
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 call 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.
To keep up to date with the latest news on these changes, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
