Thousands of people receiving tax credit and benefits payments risk having their money stopped if they don't switch their accounts within the next month, warns HMRC.
This is because the tax office is no longer depositing any of the state benefit payments it's responsible for into Post Office card accounts after April 5, 2022.
While most state support comes from the Department for Work and Pensions, some is handled by HMRC which is responsible for Child Benefit, Working Tax Credit, Child Tax Credit, and Guardian's Allowance.
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The tax office had been due to stop paying those into Post Office accounts at the end of November 2021 but this was then postponed to give people more time to set up new accounts and notify the department - following the disruption caused by the pandemic
DWP payments into Post Office card accounts will continue for longer and will be terminated at the end of November 2022.
In guidance issued in November 2021, when the account closure was postponed, HMRC explained: "The department has arranged a one-off extension to the contract with the Post Office allowing customers until April 5, 2022 to provide alternative account details to HMRC.
"This means that the 13,000 customers, who are still to notify HMRC, will temporarily be able to continue to receive their payments into their Post Office account, giving them extra time to set up new accounts and notify the department.
"HMRC is still encouraging those benefiting from the extension to switch their account at the earliest opportunity. Around 137,000 customers have already provided updated bank account details. Customers can choose to receive their benefit payments to a bank, building society or credit union account.
"If they already have an alternative account, they can contact HMRC now to update their details."
