HMRC is to stop paying certain benefits to Post Office accounts from the end of November 2021. Which payments are affected and what do you need to do before then?
The Low Incomes Tax Reform Group (LITRG) has issued a reminder that HMRC and the DWP will stop making payments to Post Office accounts after 30 November. Recipients of tax credits, universal credit, child benefit and guardian’s allowance must provide alternative bank account information to HMRC by that date, or payments will stop. HMRC will then write to the recipient to prompt for account details before payments can resume. As this is just before Christmas, falling foul is likely to cause hardship.
If a recipient doesn’t hold an alternative account, they will need to open one with a bank, building society or credit union and advise HMRC or the DWP (or both) of the new details. If an account cannot be opened, the individual must contact HMRC for further advice ASAP.
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