State pensioners warned ‘do not ignore letters’ as payment change kicks in by November

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Many pensioners will see their state pension as key to their finances and planning in later life. As such, ensuring this payment is received with ease is key – which means many have turned towards the Post Office Card Account (POca).

While this account has been popular for receiving the state pension in the past, its use has slowly waned in recent years.

As a result, the Department for Work and Pensions (DWP) has decided it will not renew its contract with the Post Office.

It means payments made into Post Office card accounts will cease, and pensioners will have to consider other options

The DWP states it has written to many POca customers to inform them of their options.

Those who have not responded should expect another letter before summer 2022 – so this correspondence is imminent.

The Post Office website states: “Please do not ignore the letters.

“The information within them informs all POca customers of their options.”

State pensioners will need to decide how they wish to receive payments from the DWP.

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With the Post Office card account no longer an option, individuals may wish to open a bank or building society account or use their existing account to receive payments.

They will also need to make arrangements for this, the Post Office states.

Individuals will then need to inform the DWP of the decision they have made to allow a smooth transition of payments. 

Once the Government stops making payments into a Post Office card account, they will ask the organisation to close it.

The website states: “It’s very important that you claim any remaining balance before we do. 

“We’ll write to you giving two months’ notice of your account’s closure. 

“When the notice period ends, we’ll close your account and you’ll no longer be able to access your money using your card. 

“Any remaining balance will be held safely until you contact us to claim it.”

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It is vital people do not close their Post Office card account until they have checked state pension payments are being issued into their new account.

Those receiving payments from the DWP who are unable to use or set up a bank account have another option.

The Government will get in touch with these individuals to explain their new Payment Exception service which may help.

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