U-turn on cash benefit card system switch-off date

People without access to a bank account will continue to be able to claim benefits in cash

Pension and benefit recipients without access to a bank account will be allowed to keep claiming them in cash from post offices for a further year following a government climbdown.

The Manx Treasury had intended to stop the MiCard system at the end of the year, with claimants encouraged to transition onto another way of receiving the payments.

However, Treasury Minister Alex Allinson was criticised in Tynwald this week after it was revealed more than 800 people were still using the service, and alternative options for them remained under negotiation.

In a U-turn by the government, Chief Minister Alfred Cannan brought forward plans to issue new cards to remaining users, which could be used during 2026.

That followed a bid by Joney Faragher MHK to force the Treasury to continue with the scheme until six months after an alternative method of payment had been approved by Tynwald.

Following an overnight adjournment of that debate on Wednesday, Cannan put forward an amendment to issue new cards to those who were unable to access a bank account.

The Treasury had previously said the withdrawal of the system would save £500,000 a year.

During the debate, Post Office chairman Stu Peters warned that sub-post offices in retail outlets had been preparing for the withdrawal of the system for some time, so the facility may not be available at all locations it was previously offered come January.

However, he said it would remain available at key locations across the island.

Chief Minister Alfred Cannan received backing for the MiCard system to run for a further year for some claimants

On Tuesday, Allinson told Tynwald members there was a "relatively small number of people" who would not be able to access a bank account, and a number of options for alternatives were "still under final negotiation" ahead of the 31 December switch-off.

Speaking during Thursday's recommenced debate, Allison said it was important to stress that during the process of issuing the new cards and helping those who could to transition to direct bank payments, claimants would not be asked to share their bank details over the phone.

He said his department was "very conscious in an uncertain world that getting a telephone call from somebody you don't know asking for your bank account details is frightening - and that's why we don't do it".

He said: "Banks don't do it, social security doesn't do it, for very good reasons.

"I do not want from this debate for people to start getting phone calls from people trying to scam them."

If anyone did receive a phone call from somebody proposing to be from the Social Security Division or a bank about MiCard asking for account details "that is not coming from government", he added.

The amendment was unanimously supported by politicians and the Treasury will now report back to Tynwald on longer term plans for an alternative method of payment within six months.