The Treasury Minister has again ruled out extending the use of the MiCard system beyond the end of the year.
Dr Alex Allinson also repeated his commitment that recipients will be able to access benefits and pensions in the new year as work continues for access to basic bank accounts.
Facing intense scrutiny in Tynwald, Dr Allinson confirmed that the cards will be deactivated at midnight on December 31, but assured members that “at least one alternative method of payment will be in place from the beginning of January” for those without bank accounts.
He also told members that the cards are not able to be extended and if any extension to the system was granted, new cards would need to be issued.
Benefits
This follows a letter sent to the remaining 935 MiCard users, urging them to provide their bank details. As of yesterday, 843 people continue to use the service, with 118 of these also receiving some benefits into a bank account.
The minister identified the core challenge, saying: “One of the issues that has been identified is people proving their identity, because conventional banks will ask for photo ID, a passport or driver’s licence, and actually, there are quite a few people in our community who have neither.”
He confirmed that alternatives for those unable to open an account would include “check cashing, and also, if necessary, physical cash payments”.
Concern
However, members expressed deep concern over the timeline and potential risks.
Liber Vannin leader Lawrie Hooper said, “We are five weeks from Christmas when everything will cease and the Treasury minister is unable to confirm that there is an alternative mechanism to pay people up and running.”
Rob Callister questioned the timing of the deactivation on a bank holiday, asking Dr Allinson to “at very least” delay the switch off until the first of January.
Vulnerable
Concerns were also raised about security for vulnerable recipients. Julie Edge highlighted that the MiCard acts as a secure form of identity and warned, “once individuals, not nice individuals in our society, know that their money is going into a bank account,” it could make them targets for coercion.
In response to the pressure, Dr Allinson gave a firm guarantee, saying: “I can absolutely commit that all those people who require payment of benefits into next year will get that by whichever means is necessary, tailored to their own individual circumstances.”
He repeatedly urged the remaining MiCard users to contact the Social Security Division immediately so their specific needs can be addressed before the system closes.