Treasury Minister Dr Alex Allinson has confirmed the MiCard system will be fully withdrawn by the end of December 2025, with reassurances that vulnerable recipients will retain access to payments.
The cash withdrawal facility is to be replaced with bank transfers becoming the default.
Dr Allinson stated: “Payments through the MiCard facility will continue until the end of December for existing users.
“For those without bank accounts, emergency cash payments will be available while we assist them in opening one.”
He highlighted free basic accounts and online banking options available.
Warning
Concerns were raised by John Wannenburgh, who warned that many MiCard users are “vulnerable, elderly or former prisoners who cannot or refuse to open accounts”.
“Saying they’ll get cash ‘until they open an account’ isn’t a solution,” he added.
Dr Allinson responded that alternatives were being negotiated, including direct cash access.
Jason Moorhouse pressed for data on unbanked users, to which the Minister admitted: “We don’t track who lacks accounts, but we’ll include that question in our next letter to recipients.”
With the MiCard contract ending on December 31, Rob Callister asked if delays were possible if uptake lagged, however Dr Allinson ruled this out, citing a £60,000 cost for card renewals.
Kate Lord-Brennan sought clarity on cash access, with the Minister confirming ongoing work with the Post Office to maintain options.
Dr Allinson concluded: “No one will be left behind. We’re ensuring all benefit recipients have a suitable payment method by 2026.”
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