Over 1,200 people are still using the MiCard service, which is due to be withdrawn at the end of the year.
Benefit payments will switch to BACS payments from the start of next year.
Responding to a question from Kate Lord-Brennan, Dr Alex Allinson said alternative measures will be in place for people who can’t open a bank account by the end of the year.
The Treasury Minister confirmed that 1,251 people were collecting their state pension or benefits using a MiCard as of 1st October, a significant drop from the nearly 3,000 users at the start of 2025.
Delays
In his written answer, Dr Allinson stated: “The Social Security Division has just sent a further letter to the remaining MiCard users urging them to take action now to switch to BACS payments.”
This is to avoid potential delays in the run-up to Christmas, when payment schedules are brought forward.
The Minister noted it is impossible to know how many users are truly reliant on the cards, as some may have bank accounts but choose to use the Post Office service.
He added: “Treasury is continuing to explore a range of options for payment of state pensions and benefits for those who don’t have a bank or on line account and for whatever reason are unable to open one.
“A number of options are currently under consideration with commercial entities and I can assure the Hon. Member that a solution will be in place before the end of this year.”