Tynwald members have pressed Treasury Minister Dr Alex Allinson for concrete plans to support vulnerable benefit claimants ahead of the withdrawal of the ‘MiCard’ payment system.
MiCard will be switched off at the end of the year.
The issue was raised by MHK John Wannenburgh, who asked what arrangements were in place for people without bank accounts.
In response, Dr Allinson said: “The Treasury does not currently record how many of the existing MiCard users have bank or online accounts or could readily open one.”
He confirmed that a solution was being explored, adding, “I can assure the honourable member that a solution will be in place before the end of this year.”
Support
The minister revealed that 1,088 people still use the MiCard.
He said the Treasury is working with support agencies like Age Concern and the Citizens Advice Bureau to assist vulnerable individuals, including those with no fixed abode or former convictions that bar them from conventional bank accounts.
However, members expressed alarm at the lack of progress and detailed data.
Tim Glover said: “We’ve known about this issue for many, many months now, and several others members have brought it up, and we’re now only two months away, that fills me with a lot of concern.”
Lawrie Hooper also questioned the timeline, adding: “The written answer doesn’t actually detail the alternatives that are being explored. What the written answer says is Treasury are actively exploring alternative solutions, which, funnily enough, is exactly what they said in April of this year.”
Dr Allinson outlined potential alternatives, telling members: “We are looking at cheque payments, which happen at the moment, but also looking at various ways of delivering cash to people.
“We are in the advanced stages of looking at prepaid debit card options to allow people to access cash in various ways that are suitable for them.”
Switch Off
Julie Edge challenged the decision to switch off the current system, asking, “you’re switching it off without a solution. Do you think that is a responsible position for the most vulnerable people in our society?”
Speaker Juan Watterson also pressed for a detailed timetable and clarity on what happens to funds left on the cards.
Dr Allinson responded that people would be informed of alternatives “well before Christmas” and assured that fund transfers would be arranged.
He added: “This is not about a policy about benefits. It’s a policy very much about the transition to far more electronic and digital solutions across our island.”
The Treasury has directed individuals needing assistance to call 685656 for support with the transition.