Benefits claimants and state pension recipients will soon be required to have their payments made into a bank or online account.
Treasury Minister Dr Alex Allinson MHK today (Tuesday 15 October) announced that MiCards, which enable people to receive their benefits or pension in cash at branches of the Isle of Man Post Office, will be replaced by other payment methods by the end of next year.
Fewer than 3,000 benefit and pension recipients now collect in cash, and the declining trend means that the cost of providing payments in this way is uneconomical.
From 31 January 2025, the facility will no longer be an option for new customers. Existing customers will be able to continue using MiCards until the end of 2025, but will be encouraged to switch to direct payments into their account before then.
Letters will be sent to all existing MiCard users in the coming weeks with full information around the change and what they may need to do.
Addressing Tynwald Members at today’s sitting, Minister Allinson said:
‘For many years a decreasing number of individuals receiving welfare payments have done so through the MiCard system with the majority now receiving payments directly into their bank account.
‘The decreasing number of people using the service means that it has reached the stage where it is no longer viable and better alternatives are now available. We will be encouraging all pension and benefit claimants to switch to bank transfers or alternative methods and the MiCard service will cease at the end of next year.
‘We will be working with the Isle of Man Post Office on this transition over the next 14 months. This change will result in a saving of over £500,000 per year.’
Post Office Chairman Stu Peters MHK said:
‘The Isle of Man Post Office has been proud to facilitate the payment of benefits and pensions in cash on behalf of Treasury’s Social Security Division. Our team will work closely with the Division to ensure a smooth transition for benefit and pension recipients.’
Anyone wishing to contact the Social Security team to discuss the change should call +44 1624 685656, email socialsecurity@gov.im or visit the office at Markwell House, Market Street, Douglas — office open 9am to 1pm Monday to Friday, excluding bank holidays.
