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Daily Record
Daily Record
Lifestyle
Linda Howard

Tax Credits and Child Benefits payments could stop for some claimants next month

HM Revenue and Customs (HMRC) customers using a Post Office Card account to collect benefit payments only have a few weeks left to update the department with new payment details before the April 5 deadline, or risk having payments paused.

From April 6, 2022 HMRC will stop making Tax Credits, Child Benefit and Guardian’s Allowance payments to Post Office card accounts. HMRC is urging account holders to contact them as soon as possible to update their bank account details to continue receiving payments without disruption.

HMRC said customers can choose to receive their benefits and Tax Credits payments to a bank, building society or credit union account.

HMRC has been contacting customers since early last year urging them to take action to avoid disruption to payments next month. At the end of November 2021, some 13,000 customers had still not updated their payment arrangements.

How to change account details

Child Benefit and Guardian’s Allowance customers can use their Personal Tax Account to provide revised account details, change their bank account details via GOV.UK or by contacting the Child Benefit helpline on 0300 200 3100.

Tax Credits customers can change their bank account details by contacting the Tax Credits helpline on 0345 300 3900.

What if I am unable to open a bank account?

HMRC said that anyone who cannot open a bank account, should contact them as soon as possible.

In November last year with the December 1st deadline looming, Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for customers who have been using a Post Office Card account to get payments from us. They need to give us their new account details now to avoid their payments being suspended.

“They can update their details online or by calling us, and they need to be very careful to avoid handing over personal details to fraudsters contacting them claiming to be from HMRC.”

What happens if I do not contact HMRC?

If a customer misses the April 5 deadline, their payments will be paused until they have notified HMRC of their new account details.

The Money Advice and Pensions Service offers information and advice about how to choose the right current account and how to open one.

In January, the Department for Work and Pensions (DWP) announced that it is looking to move benefit claimants and State Pensioners off the Post Office card account by this summer, after extending the previous deadline to allow people more time to make alternate arrangements.

To keep up to date with this story, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.

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