The Isle of Man Government has announced that all benefit claimants and state pension recipients will soon be required to receive their payments through a bank or online account, as the MiCard cash payment system is being phased out.

Treasury Minister Dr. Alex Allinson confirmed on Tuesday that the MiCard system, which allows individuals to collect their benefits or pension in cash at Isle of Man Post Office branches, will no longer be available by the end of 2025.

The change will result in a saving of over £500,000 per year, according to the Treasury Minister.

It was said that currently fewer than 3,000 people use the MiCard service, and the steadily declining number of users has made the cost of providing this option unsustainable.

From January 31 2025, new customers will no longer have the option to collect payments in cash.

Existing MiCard users will be able to continue using the service until the end of next year, but they are encouraged to transition to direct payments into their bank or online accounts before then.

Letters will be sent to all existing MiCard users in the coming weeks with full information around the change and what they may need to do.

Addressing Tynwald members at Tuesday’s sitting, Minister Allinson said: ‘For many years a decreasing number of individuals receiving welfare payments have done so through the MiCard system with the majority now receiving payments directly into their bank account.

‘The decreasing number of people using the service means that it has reached the stage where it is no longer viable and better alternatives are now available.

‘We will be encouraging all pension and benefit claimants to switch to bank transfers or alternative methods and the MiCard service will cease at the end of next year.’

The government has stated that the change will save more than £500,000 annually, and that it will work closely with the Isle of Man Post Office during the 14-month transition period to ensure a smooth process for recipients.

Post Office chairman Stu Peters added: ‘The Isle of Man Post Office has been proud to facilitate the payment of benefits and pensions in cash on behalf of Treasury’s Social Security Division.

‘Our team will work closely with the Division to ensure a smooth transition for benefit and pension recipients.’

An information document is available to view and download from the Social Security section of the Isle of Man Government website. Those wishing to discuss the changes can contact the Social Security team by calling 685656, emailing [email protected], or visiting the office at Markwell House, Market Street, Douglas, which is open Monday-Friday from 9am to 1pm, excluding bank holidays.