Cash payments scrapped for new benefit claimants

The MiCard service will end on 31 December 2025

The collection of pension and benefit payments in cash has been stopped for new claimants.

The move, which will see the the claims paid directly into a bank account, are part of the phasing out of the Isle of Man Treasury's MiCard system.

In October it was confirmed the system, which allows residents to collect their money at Isle of Man Post Office branches, would end on 31 December 2025.

The Treasury said there had been a decline in usage and the service was no longer "affordable nor justifiable", with the change set to save £500,000.

Under the amendments to the Social Security (Claims and Payments) Regulations 1987, it was also agreed existing users would still be able to collect payments in cash at post offices until 31 December 2025 at the latest.

The Treasury said since social security officials wrote to about 3,000 existing MiCard users in mid-November, more than 600 had applied to switch to direct payments.

Politicians approved the required legislative changes at the January sitting of Tynwald, but the debate saw concerns raised about how the move could affect vulnerable residents.

'Acceptable alternative'

During the discussion in the Manx Parliament on the change, Juan Watterson SHK said he feared the Treasury was stopping the system "before we know what the plan B is and without really understanding where we're going".

Lawrie Hooper MHK asked how the minister was "going to make sure that people who don't have access to bank accounts have an absolutely acceptable alternative".

Treasury Minister Alex Allinson said more than 95% of new pensioners choose to have their Manx state pension paid directly into their bank account.

But he said it was "acknowledged" not all recipients would have that facility and a "small number of individuals" may be in a situation where that was "not feasible or appropriate".

Treasury officers were investigating other options for those cases, including payments in cash, he added.