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The Government phased out the payment of benefits by order book and giro for the majority of claimants in 2005. Most claimants are now paid a “direct payment” (not to be confused with community care direct payments) into a bank, building society or Post Office card account (POCA).
People having severe difficulty using the direct payment system (such as those having problems remembering and using a PIN number, using a cash-point machine or cheque book to access their money or who need different agents/carers to collect their benefit) can still continue to receive cheque payments.
If you refuse to provide the Department for Work and Pensions with details of your bank accounts you will be moved onto a cheque payment system automatically.
POCAs were created to assist those claimants who did not have a bank account or who were unable to get one. The POCA was intended as a temporary measure that would cease in March 2010.
The Government announced in December 2006 that there would be a successor to POCA, and a tender process was started.
However, in order to "support a viable Post Office network", a decision has been taken to cancel the competitive tender. A new contract has been awarded to Post Office Ltd, to continue administering POCAs, which will run initially from 2010 to March 2015, with the possibility of an extension beyond that.
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