Cash pension and benefit payments to stop in 2025

The change is set to save Treasury about £500,000 a year

A card system used by some Manx residents to collect pension and benefit payments in cash will be scrapped by the end of 2025, the treasury minister has confirmed.

Alex Allinson said fewer than 3,000 people continued to use the MiCard service to receive their money at branches of the Isle of Man Post Office.

He said declining usage meant the service was "no longer viable" and the change would save £500,000 each year.

But Post Office chairman Stu Peters MHK raised concerns about the "knock on effects" the change would have on sub-post office counters across the island.

Allinson told Tynwald members: "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 service had reached the stage where it was "no longer viable and better alternatives are now available", he said.

'Unfortunate consequences'

The minister said the Treasury would work with the island's Post Office on transition over the next 14 months, and all pension and benefit claimants would be encouraged to switch to bank transfers before the service ceases by the end of 2025.

But Peters said it must be noted that the decision would make many independent traders review the commercial viability of their sub-post office activities, as it was one of their "three financial pillars", alongside alongside postal and counter services.

He said while he recognised that the social security division was on a "digitisation journey", he said there would be "unfortunate consequences" as a result of the switch.

The Treasury said letters would be sent to all existing MiCard users in the coming weeks with full information about the change and what they would need to do.