Thousands of Universal Credit and state pension payments have changed – what you need to know

THOUSANDS of people getting benefits have seen a change to payments.

Universal Credit claimants and those on state pensions no longer get their money sent to Post Office card accounts.

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Post Office card accounts (POAs) were used by those who don’t have a bank account to get their benefit payments.

But the Department of Work and Pensions (DWP) has switched everyone over to a new payment method.

The government previously announced it will no longer make payments to the accounts and that they will close by November 30.

Everyone who hasn’t given new bank account details to get their payments has been moved to the Payment Exception Service in recent weeks.

Customers should have been sent a letter about the change and the end of the POA and change to where they get payments.

The service allow access to benefits, such as Universal Credit and the State Pension, through the PayPoint network.

Millions of people previously used a Post Office card account to get benefits, which can be used to withdraw funds with no fees or charges.

What’s replaced Post Office accounts?

Your two options are opening a new bank account or accessing your payments via the Payment Exemption Service.

If you want your benefits payments to be made to a bank account then you will need to tell the DWP your bank account details.

You can do this over the phone by calling 0800 085 7133 or by post if you get a letter from the DWP or HMRC.

You also need to tell the Post Office to close your card account – make sure you withdraw any money first.

You can do this by completing an account closure form at your local Post Office, or calling 0345 722 33 44.

If you don’t do this then you’ll automatically have been moved to the Payment Exception Service.

You can still move from this to getting the cash into a bank account, as described above.

With the service, you’ll be given a unique code which you can use either at a pay point retail outlet or the Post Office.

You can use the Payment Exceptions service either by using a payment card, voucher by email, or text message containing a unique reference number.

Anyone who’s been moved over should check their Post Office Account for any leftover cash.

How do I open a bank account?

The government’s MoneyHelper service says you have three options for a new account:

• current account
• basic bank account
• prepaid card

If you don’t qualify for a bank’s current standard account, you’re best to get a basic bank account.

So, if you’ve got poor credit history or have experience of serious money problems, you might not meet the requirements for a current account.

But pre-paid cards can also be used if you can’t get a current account, although Martin Lewis has warned that they often come with expensive and unnecessary charges.

Make sure you research exactly what you’re getting and whether you’ll be charged extra fees before you sign up to one.

All three types of account can be used to deal with day-to-day spending and paying bills, as well as getting your benefit payments.

When you’re researching, make sure you compare different bank companies to see who has the best offer.

You can check out MoneyHelper’s guide to choosing the best bank account for benefit payments.

Here we explain all you need to know about finding a basic bank account and how to get accepted.

If you need help opening an account or are affected by the Post Office card account closures you can find free and friendly help from the following services:

This post first appeared on thesun.co.uk