DWP To End Benefit Payments to Post Office Card Accounts

POST OFFICE - Work and pensions secretary Thérèse Coffey said the cost of the contract provided “poor value for taxpayers” given that most people using POCA already have bank accounts. It is cheaper for DWP to pay money directly into bank accounts than to use the POCA system.

Around 900,000 people use POCA to collect payments. However, DWP has been trying to encourage them to have benefits paid directly into their bank accounts instead.

The department has been writing to pensioners over the last three years saying they are now expected to use bank accounts.

“Uptake of accounts in the last year has been exceptionally low but, in any event, given that the vast majority of people using POCA we believe already have a bank account, the cost of the contract is poor value for taxpayers,” Coffey said yesterday. “Current customers who currently receive payment through a Post Office card account will see no change and will continue to receive payment into their accounts for the remainder of the contract period.”

She added that an exception service would remain in place to make payments to people who cannot access any bank account would remain in place.

The cabinet minister also said DWP was using a contact centre it had helped to set up for the Ministry of Housing, Communities and Local Government and the National Shielding Service to contact vulnerable customers who receive benefits or pensions solely through the Post Office accounts.

Among other things, the Post Office is providing contact-free cash payments by Royal Mail special delivery for users of these accounts during the coronavirus outbreak, she said.

Image: All new claimants will need to use a bank account to receive their pension or benefits payments from Monday, May 11.