Benefit Claimants Must Switch from Post Office Card Accounts by 6 April

Thousands of people whose tax credit and child benefit payments are paid into a Post Office card account must open new bank accounts this week to avoid payments being delayed.

From Tuesday, 6 April, HMRC will no longer make payments into Post Office card accounts following the end of its agreement with the Post Office. Benefit claimants therefore must open a new bank account with a bank, building society, or credit union to continue being paid.

The policy was first announced in October 2019 and since then, more than 143,000 benefit claimants have already notified HMRC of their new accounts.

HMRC was initially intended to stop paying into Post Office card accounts on 30 November 2021 but extended the deadline until April 2022 to give benefit claimants more time to switch.

However, as of the beginning of April, around 6,800 customers had not opened a new account or notified HMRC of it. From 6 April it will not be possible to pay tax credits or child benefit to those people until they have provided a valid account. Their payments will be paused until they inform HRMC of their new account.

Myrtle Lloyd, HMRC’s director general for customer services, said: “Time is running out and we want to make sure that no customer misses out on the benefit payments they are entitled to. If you still need to switch your Post Office card account, contact HMRC to update your bank account details.”

Recipients of Child Benefit and Guardian’s Allowance can use their Personal Tax account to provide updated account details, change their bank account details through GOV.UK, or contact the Child Benefit helpline on 0300 200 3100.

Tax credit customers can update their bank account details by contacting the tax credit helpline on 0345 300 3900.

Customers who can’t open a bank account, such as those lacking IDs, should contact HRMC for assistance.

Sources