Applicants for Universal Credit, Tax Credits and Job Seeker’s Allowance could lose access to their money


A huge shift in state pensions, universal credit, and other benefits could cause applicants to lose access to their money.

People receiving benefits from the Department of Work and Pensions or HM Revenue and Customs will need to make urgent changes to their accounts if they are currently using a postcard account.

People currently using this type of account could lose access to their money in December, when a phase-out process is complete.

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The changes will affect people claiming Universal Credit, Tax Credits, Jobseeker’s Allowance, Personal Independence Payment, Disability Living Allowance, Employment Support Allowance , family allowances or any other benefit from DWP or HMRC.

The Postcard Account (POCa) is a simple and convenient banking service for those who don’t have access to regular bank accounts, but it won’t be around for very long.

DWP and HMRC have written to account holders for the past three years, warning them of changes to the benefits process, but the system will finally come to a head at the end of November.

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Those who still use POCa accounts should open a bank account as soon as possible.

Tax credit applicants using POCa accounts are urged to update their bank details and personal payment information before it is too late.

People claiming at the Ministry of Work and Pensions may have already experienced difficulties following the closure of the service on May 11, 2021.

If you’ve used a postal account before but moved to a regular bank account, it’s important to make sure your old account has been closed.

You can do this by contacting La Poste via its website.

  • Have you been affected by the changes? Let us know in the comments!


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