As of December 1, 2021, HM Revenue and Customs (HMRC) will stop paying family allowances, guardian’s allowances, and tax credits to postcard accounts.
HMRC urges customers who receive their payments through this method to act now so that they always receive their money on time.
All Tax Credit, Family Allowance and Guardian Allowance clients who receive their allowances or payments through a postcard account have until November 30, 2021 to create a new account and notify HMRC of the details in order to that they can continue to receive their payments. Any suspended payment will be withheld and then paid to the customer once they notify HMRC of the new details.
If customers already have another bank account, they can contact HMRC now to update their details. If they have no alternative, they would have to open a new bank, building society, or credit union account to receive their money.
Customers can use their personal tax account to provide revised account details. Alternatively, family allowance clients can change their bank details via GOV.UK or by contacting the child benefit helpline on 0300 200 3100. Tax credit clients can change bank details by contacting the tax credits hotline on 0345 300 3900.
If customers cannot open a bank account, they should contact HMRC. The Monetary Advice and Pensions Service offers information and advice on how to choose the right checking account and How to open an account.