HUNDREDS of thousands if Brits claiming benefits could have payments stopped in November unless they transfer payment to a bank account or open one.
Post Office card accounts will be closed affecting anyone who gets Universal Credit, State Pension payments and other benefits paid through them.
Account holders will need to move payments to a bank account before Novemebr 30 because the DWP will stop making them to Post Office card accounts after this date.
Claimants will still get their payments but they will have to use a different account to access the cash.
The Post Office card account is a service linked to the Department for Work and Pensions (DWP) that lets you receive your state pension, Universal Credit or other benefit payments.
An estimated 780,000 people use a Post Office card account, which can be used to withdraw funds with no fees or charges.
The service closed for new benefit claimants last year and it was announced that anyone already using one will have to move accounts by November 2021
The Post Office first introduced their card accounts in 2003 to replace the old state pension "order books".
The DWP is writing to account holders reminding them that they need to choose a new way to be paid.
The date you get paid and the amount you get will not change – just the way you get paid.
How can I get my benefit payments if my Post Office account is closing?
Anyone who already has a bank account with a bank or building society can choose for their payments to be made there.
But you'll need to tell the DWP your bank account details.
You can do this over the phone by calling 0800 085 7133 or by post if you get a letter from the DWP or HMRC.
You also need to tell the Post Office to close you card account – make sure you withdraw any money first.
You can do this by completing an account closure form at your local Post Office, or calling 0345 722 33 44.
Those who don't already have another account will need to open one and let the DWP know their new account details so that payments go to the new account.
When you open a bank account you will still be able to use the bank card you get with it to withdraw cash at Post Offices, as well as other locations like cash machines.
For anyone unable to open an account, the government Payment Exceptions Service can be used.
This is a payment card, voucher by email, or text message containing a unique reference number that can be used to access benefit payments from PayPoint outlets which are in shops and newsagents.
You'll need to speak to your local benefits office to get this set up, or respond to the letter about Post Office card account closures you got from the DWP.
How do I open a bank account?
The goverment's MoneyHelper service says you have three options for a new account:
- current account
- basic bank account
- prepaid card
A basic bank account is designed for people who don't qualify for a bank's current standard account – for example, they've got poor credit history and have experience of serious money problems.
Pre-paid cards can also be used if you can't get a current account, but Martin Lewis has warned that that they often come with expensive and unnecessary charges.
All three types of account can be used to deal with day-to-day spending and paying bills, as well as getting your benefit payments.
It's worth comparing the different types of bank account to work out the best option for you.
You can check out MoneyHelper's guide to choosing the best bank account for benefit payments.
Here we explain all you need to know about finding a basic bank account and how to get accepted.
If you need help opening an account or are affected by the Post Office card account closures you can find free and friendly help from the following services:
- Citizen's Advice
- Turn2Us
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