Today’s payment method adjustments have prompted a DWP update on Post Office card accounts.
THE DEPARTMENT OF WORK AND PENSIONS (DWP) has released an update regarding Post Office card accounts, which may affect how people receive payments.
The Department for Work and Pensions (DWP) is in charge of a number of benefits and other payments, such as the state pension, that affect millions of individuals. Many people have elected to receive their benefits or payments using a Post Office card account, however they are being phased out. The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will discontinue sending payments into Post Office card accounts by November 2021.
Certain persons are being placed onto a voucher-based program called as the Payment Exception Service as part of a phase-out procedure.
Individuals who do not have a bank account can use the Payment Exception Service to receive benefit payments or their state pension.
For the time being, people who require the service can access it through the PayPoint network.
They will, however, be available through the Post Office network beginning today.
From the end of August 2021, consumers will be switched to the Payment Exception Service if necessary, according to the DWP.
If the Department has not been informed with new account information, this will happen.
Work and Pensions Secretary Therese Coffey mentioned the service in a statement to the Commons last year.
“Account take-up has been extraordinarily low in the last year, but in any case, given that the vast majority of people utilizing POCA, we believe, already have a bank account, the contract’s cost is poor value for taxpayers,” she said.
“Present customers who receive payment through a Post Office card account will not experience any changes and will continue to receive payment into their accounts for the balance of their contract time.
“For persons who don’t have access to a bank account, we can use the HMG Payment Exception Service.”
Individuals must collect their payment within 30 days of it being paid out, according to current government advice for the Payment Exception Service.
Unless they receive a letter stating that they have 90 days to collect the money.
There is also a £100 restriction per payment collection, which should be kept in mind.
As a result, some people may need to make many collections at once. “Brinkwire News in Condensed Form.”