Pensioners are being urged not to ignore an important letter from the Department for Work and Pensions (DWP) as an update to the way that the State Pension is paid to certain accounts is set to kick in. This long-planned change was delayed due to the coronavirus pandemic and will take effect this November.
Older Brits using Post Office accounts to manage their payments of the state benefit are being asked to update their payment details with a new bank account, after the DWP decided to end its contract with the now-privatised postal service.
This means that payments to Post Office accounts will cease and pensioners will have to find another way to receive their money. While the department has already sent out one letter informing account holders of their options, thousands of pensioners are still to update their details and could miss out on payments from November 2022.
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These pensioners are due to receive a second urgent reminder this summer, meaning the letter could be in the post imminently. Claimants will have two months to clear any remaining balance before the account closes, though the Post Office says that any late-switchers will still be able to withdraw their funds.
The Post Office website states: “Please do not ignore the letters. The information within them informs all Post Office customers of their options.
“It’s very important that you claim any remaining balance before we do. We’ll write to you giving two months’ notice of your account’s closure.
“When the notice period ends, we’ll close your account and you’ll no longer be able to access your money using your card. Any remaining balance will be held safely until you contact us to claim it.”
Pensioners can elect to have their money transferred to their regular bank account, which they can also choose to make their default payment account.
Those without a bank account can still collect their benefit, using the Payment Exception Service. This is where you receive a card, email, or text message with a code.
You can then take this code to any PayPoint outlet or Post Office to receive your money. You will need your proof of identity and the code to withdraw your money.
