A change to how state pensions are paid out could be “discriminating against older people”.
Those who use Post Office Card Accounts will have to make alternative arrangements as the Department of Work and Pensions (DWP) is set to stop paying into them from November 30.
But options are limited following a string of bank closures across the region.
Phil Stewart, chief executive of Dumfries and Galloway Citizens Advice Service, said: “What are people that use these card accounts going to do when they are unable to move them to other building societies or banks when they have already left their local areas?
“It is becoming a challenge for those that are digitally excluded or not confident in using digital banking.
“Does it drive more and more vulnerable people to keep money in their household and increase the risk to them being victims of crime or losing their money if they can’t remember where they put it?
“It also leaves them open to being unable to quickly and properly process bills, leading to unnecessary and unmanageble debt. For me it’s almost discriminating against older people who rely on traditional means of banking and account management.
“In Dumfries, the Post Office is disappearing from the Whitesands so there will be nothing in the town centre. If that’s Dumfries, what is it going to be like for people in rural communities getting access to banking facilities?
“They are being driven towards online banking but a lot of them haven’t got it, or haven’t got the broadband connection or the capability.”
A notice on the Post Office website reveals the DWP “will not be renewing their contract” for the accounts, known as POcas, and urges people to ensure they claim their remaining balance before it closes.
People affected will receive letters informing them of the change and advise them to set up or provide details of an alternative account. The change had been due to take place last year but was pushed back by 12 months due to the pandemic.
People who are unable to access a new bank account will be put onto a new payment exception service, allowing them to choose how they receive their payments.
Options include a digital voucher that can be received by phone or email and a card that can be used to access money at PayPoint outlets or Post Office branches.
When announcing the 12-month extension last year, Pensions Minister Guy Opperman said: “Whilst the vast majority of pensions and benefits are paid directly into peoples’ bank accounts, some people prefer to collect their payments over the counter at their local Post Office.
