The MiCard system, a service used by some Manx residents to collect pension and benefit payments in cash, will be phased out by the end of 2025, according to Treasury Minister Alex Allinson.
Currently, fewer than 3,000 people on the Isle of Man continue to use the service to receive their payments at local post offices.
Minister Allinson explained that declining usage has made the system “no longer viable,” and discontinuing it would save the Treasury an estimated £500,000 annually.
With most residents now receiving their welfare payments directly into their bank accounts, the MiCard service has become less necessary.
Impact on Local Post Offices
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However, the decision has raised concerns, particularly for sub-post offices across the island. Stu Peters MHK, chairman of the Isle of Man Post Office, warned about potential “knock-on effects” for these independent businesses.
Many rely on MiCard transactions as one of their “three financial pillars,” alongside postal and counter services. Peters pointed out that the removal of the service could make some traders reconsider the commercial viability of their sub-post office operations.
Transition to Bank Transfers
Minister Allinson reassured the public that the Treasury would work closely with the island’s Post Office to ensure a smooth transition over the next 14 months. All current pension and benefit claimants who still use the MiCard system will be encouraged to switch to bank transfers before the service is officially retired.
He acknowledged that while the move is part of a broader “digitisation journey” for social security services, it could have “unfortunate consequences” for those businesses and individuals who are slower to adapt.
Next Steps for MiCard Users
The Treasury has confirmed that letters will be sent out in the coming weeks to all remaining MiCard users. These letters will provide full details of the changes and explain the steps they need to take to transition to the new system.
While the shift to bank transfers is seen as a more efficient alternative, the government aims to support residents through the process and address any concerns regarding the impact on local communities.