Politicians approve end of MiCard service amid concerns for vulnerable residents

Service to end on 31 December 2025

Tynwald has approved changes to how social security benefits and state pensions are paid, with the MiCard service set to be discontinued by the end of 2025.

However, the decision was not without concerns over how the move could affect vulnerable residents.

Under amendments to the Social Security (Claims and Payments) Regulations 1987:

• From 1 February 2025, new benefit and state pension claimants will no longer be able to use the MiCard service, with payments made directly into bank accounts via the BACS system.
• Existing MiCard users will still be able to collect payments in cash at post offices until 31 December 2025 at the latest.

The MiCard service, operated by Isle of Man Post, allows claimants to collect payments in cash weekly.

Treasury has argued that the service is no longer sustainable due to its high costs and a sharp decline in users.

More than 95 percent of new pensioners reportedly choose to have their payments transferred directly to their bank accounts, and Treasury says direct transfers via the BACS system are significantly more cost-effective.

Despite these arguments, several politicians raised concerns during the debate about how the change would impact those who do not have bank accounts or face difficulties accessing digital payment methods.

Critics warned that vulnerable groups, such as those on low incomes or living in rural areas, could be disproportionately affected.

Treasury has pledged that the Social Security Division will work closely with existing MiCard users throughout 2025 to help them transition to direct credit transfers “as early as possible”.

While the move has been approved, some members of Tynwald have called for careful monitoring to ensure no one is left behind during the transition.