Warning to cash benefit claimants ahead of changes

Alex Allinson said alternatives would be available for those unable to open a bank account

People still claiming pensions and benefits in cash at post office branches have been urged to make alternative arrangements before the cards are withdrawn at the end of the year.

The Manx Treasury said more than two thirds of the 3,000 people using the MiCard system last October had now transitioned to receiving the payments directly into bank or online accounts.

Remaining users had been sent letters urging them to contact the social security division "as a matter of urgency" to make alternative arrangements.

Treasury Minister Alex Allinson confirmed 843 were still using the service, with 118 of those already receiving some benefits directly into their bank accounts.

'Alternative method'

Concerns were raised in Tynwald over potential barriers to certain people opening a bank account, particularly those with a previous criminal conviction for money laundering.

Allinson said the island's Credit Union had been "doing some incredibly good work" with those affected before their release from prison, and alternatives including cheque cashing and physical cash payments would remain available where necessary.

He said, as the island had 40,000 benefit recipients, there was a "relatively small number of people who require benefits who perhaps don't have access to a bank account".

However, he said a number of options were "still under final negotiation", including "the involvement of business partners as well as other existing systems to provide cash payments to benefit recipients for those without a bank account", he said.

"At least one alternative method of payment will be in place from the beginning of January, tailored for each of those individuals who are unable to receive their benefits via an electronic transfer," he added.

"If anyone is using the MiCard system and has not contacted the Social Security Division, I really would urge them to do so as soon possible too, so we can understand their particular needs and meet them as much as possible."