Scrapping of the MiCard systems is causing real anxiety among constituents, MHKs told the House of Keys.

Concerns centre on those who don’t have access to a bank account.

Douglas North MHK John Wannenburgh said: ‘There is a lot of anxiety amongst my constituents about this and the way it has been handled.

‘I want to provide them with some confidence that they will not be forgotten, and they will not be inconvenienced beyond what they have been. ‘

The treasury minister replied: ‘I apologise to the member's constituents if they feel that this has not been handled properly.

‘We've actually done the messaging quite carefully over a year and a half and made our intentions quite clear.’

He said MicCard facilities will continue to be available until the end of December this year for existing customers, and the decision to end the provision for potential new customers after February this year did not appear to have caused difficulties.

Instead benefit and pension payments are going straight into their bank or online accounts.

Dr Allinson said Treasury officers are continuing to investigate alternative options for payments to customers who may genuinely be finding it difficult to open a bank account or online account, including payments in cash.

‘Discussions are ongoing with various organisations,’ he said.

‘I can confirm that it is very much Treasury's resolve to ensure that an alternative to direct payments into bank accounts or online accounts be made available to those who need it before the end of the year.’

But Mr Wannenburgh pointed out that many of those who are receiving the MiCard payments are vulnerable, elderly, or have come through the criminal justice system.

He said: ‘They cannot open bank accounts. So when he says that they will be paid cash until they have an account, that is not going to happen.

‘Add in to that some people do not want to open bank accounts, what is he going to do to make sure that those people are well catered for?’ he asked.

Dr Allinson said in November, the social security division wrote to all 2,662 MiCard users at the time to inform them of the changes.

He said as of March 10 this year, the number of users had dropped to 1,754.

Dr Allinson insisted: ‘We will have an alternative system of payments for those people who, for whatever reason, can’t or won’t open a bank account, but are in negotiation at the moment with a number of different providers.’

He said once firm arrangement were in place, this will be publicised and MHKs would be informed.

Rob Callister (Onchan) asked if the ending of MiCard could be delayed.

Dr Allinson replied that the contract with MicCard had been terminated and there would be considerable costs if new cards had to be provided now.

He said: ‘It's absolutely imperative we work with the people who currently get benefits to arrange a suitable system for them to be able to get those benefits, to be able to get access to cash should they need that.’