The Treasury Minister has defended the decision to phase out the MiCard cash payment service.

The government announced last month that all benefit claimants and state pension recipients will soon be required to receive their payments through a bank or online account.

The MiCard system 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 while no new customers will be able to use it from the end of January.

The change will result in a saving of over £500,000 per year, according to Treasury Minister Dr Alex Allinson

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, the Treasury argues.

At this week’s sitting of the House of Keys Dr Allinson was asked by Douglas North MHK David Ashford what assessment had been made on the impact of withdrawing the service, particularly on those who cannot open a bank account.

Dr Allinson explained that the majority of MiCard users already have bank accounts and those who don’t can open one without incurring extra fees. He said banks and the Credit Union have already been contacted.

He added : ‘For existing users who do not have a bank account or online account, they will have up to 14 months to open one.

‘Those who could struggle to open a bank account themselves may wish to ask a trusted family member or friend for help or contact support agencies such as Age Concern.

‘Treasury is also exploring the possibility of providing prepaid debit cards and cash payments to customers who, for whatever reason, cannot or will not open a bank account.’

Dr Allinson also said the MiCard system would have to be replaced by a newer version at the end of December 2025 anyway which would cost more than £50,000.

He also said the department will be identifying those who cannot or will not open a bank account shortly and then spend the next 14 months finding them an alternative way to receive their benefits.

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.

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.