The Department of Work and Pensions (DWP) has issued a warning on Post Office card accounts, stating that you must act by November’s deadline.
POST Office card accounts (POca) are a type of bank account that permits account holders to receive automated government benefit or pension payments. The government plans to phase out the use of these cards in the coming months, and the DWP has urged holders to act now.
POca is a unique card that can be used to obtain state pension income, Universal Credit, and other benefits. Thousands of people use it. However, starting in November 2021, both the DWP and HMRC will stop sending payments into these accounts, according to the government.
The Department of Work and Pensions (DWP) issued a warning about this just yesterday.
“Post Office card accounts are closing,” it stated. If your benefits or pension are paid into one of these, please contact us so that we can assist you with the next steps.
“Our phone lines are open Monday through Friday from 8:30 a.m. to 4 p.m.”
The DWP will issue letters to affected holders in the coming months, according to the Money Advice Service (which has already been merged into “MoneyHelper”).
Holders will need to liquidate their accounts, according to the Money Advice Service, but “there’s no need to panic because you still have time.”
Holders of a POca must fill out an account closure form (P6703), which is accessible at local Post Offices or by calling the POca helpdesk at 03457 22 33 44.
This form must be filled out and taken to a Post Office branch, where it will be reviewed for accuracy and forwarded for processing.
The process of closing an account can take up to ten business days.
Due to the closure of POcas, citizens will have three alternatives for receiving pensions and benefits payments in the future:
As the deadline approaches, the Post Office advises that individuals not leave any money in their POca.
Benefit claimants were notified of the changes over a year ago, with Thérèse Coffey, Secretary of State for Work and Pensions, announcing in early 2020 that no new benefit applicants would be able to use POca in the future.
“I can inform the House that, as we prepare for the end of this contract, the DWP will ban any new benefit and pension claimants from using the Post Office Card Account from May 11,” Ms Coffey said at the time.
“Account take-up has been particularly low in the recent year, but in any case.”Brinkwire Summary News”.