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Daily Mirror
Daily Mirror
Business
Sam Barker

HMRC issues warning to 7,500 people on benefits before Post Office account closures

Thousands of people could stop getting tax credits , Child Benefit and Guardian's Allowance next month, HM Revenue & Customs (HMRC) has warned.

The issue is that around 7,500 Brits still get these payments into their Post Office card accounts, but HMRC will soon stop allowing this.

From April 5, anyone who has not switched these payments to a new account will get nothing until they do.

Customers can choose to receive their HMRC benefits into a bank , building society or credit union account.

The change to Post Office card account payments was due to come into force from November 30 last year.

It was pushed back to allow more people time to arrange a new payment method.

There were still around 13,000 people getting these benefits paid into Post Office card accounts in November 2021.

What do I need to do next?

If you already have another bank account set up, you can contact HMRC to let them know your new details.

Your benefit payments will then be sent to this account instead of your Post Office card account.

If you need to set up a new bank account, you should let HMRC know your new details as soon as your new account is up and running.

The amount you get in benefits and your payment date from HMRC won't be affected by these changes.

You can update your Personal Tax Account or Child Benefit account online at Gov.uk or by calling 0300 200 3100.

HMRC director general for customer services Myrtle Lloyd said: "We want to make sure that no customer misses out on the benefit payments they are entitled to.

"If you still need to switch your Post Office card account, contact HMRC to update your bank account details by April 5."

Post Office card accounts are also closing for those who receive benefits from the Department for Work and Pensions (DWP).

This includes those who receive Universal Credit , the state pension or other DWP benefits.

The DWP contract with the Post Office ends on November 30, 2022.

For those who claim benefits from the DWP and who don't want to open a bank account, you'll be able to use the Payment Exception Service.

The Payment Exception service allows you to withdraw your cash either by using a payment card, voucher by email, or text message containing a unique reference number.

Either of these methods must be presented at a PayPoint outlet, which are in shops and newsagents, in order to get your benefits.

If you don't update the DWP with your new details by next November, you'll automatically be moved onto the Payment Exception Service.

The Payment Exception Service is for DWP benefit claimants only and is not available to those who receive HMRC benefits.

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