Removing the MiCard system will save about £650,000 upfront, with the costs associated with the switch resulting in a saving of around £500,000.
Treasury Minister Dr Alex Allinson was asked about its withdrawal by his Ramsey colleague Lawrie Hooper (Lib Vannin).
He said that there will be a “gross saving to general revenue of £0.65m a year from the 2026-27 financial year”.
However Dr Allinson said this will be mitigated by an increase in costs relating to the increased number of BACS transactions arising from MiCard users switching to direct bank transfers and costs related to the provision of an exceptional payments service for those unable to access a bank or on-line account.
No Equality Check
Dr Allinson also confirmed that a formal Equality Impact Assessment was not completed in respect of this policy issue but the “duty to promote equality and have due regard to section 143 of the Equality Act 2017 was undertaken and documented”.
He added: “The possible effects of the changes of the payment method for benefits was discussed in relation to those recipients with protected characteristics.
“In terms of the impacts of this change, I believe they are positive.
“As regards the elderly, disabled and frail they will no longer have to battle adverse weather conditions to go to the post office to collect their pensions or benefits.
“Also, in terms of their safety they will no longer have to carry on their person sizeable amounts of cash and they’ll no longer have to pay cash into their bank accounts to cover their standing orders, direct debits etc.”
5 Comments