POST OFFICE
CHANGES TO PENSIONS,
FAMILY ALLOWANCES AND BENEFITS
(A note from Louise Hay, Sub-Postmistress, Peterculter Post Office)
CHANGE TIMETABLE
Those of you who receive your State Pension, Family Allowance or other Benefits by using a book to get cash from the Post Office will soon be receiving notification about a change in the payment system. Pension Books, Child Benefit/Family Allowance Books and other Benefits Books will be phased out from early next year. From April 2003, your money will have to be paid into an account with a Bank or the Post Office.
AN EXPLANATION OF YOUR OPTIONS
When you get your letter, it will detail the three options available. All the options, to a greater or lesser extent, allow you to continue to use the Post Office to collect the money.
Option 1: Have your money paid directly into a Bank Current Account (A Cheque Book account)
Provided that the Bank you use has a
partnership agreement with the Post
Office, you
will be able to collect
your cash free of charge at the Post Office. Current
banking partners are:- Alliance &
Leicester, Barclays, Cahoots, The
Co-operative Bank, First Direct (
Option 2: Have your money paid into a basic bank account (An account operated by a card only)
All the major UK Banks offer such accounts. Account holders will be able to collect their cash free of charge at any Post Office.
Option 3: Have your money paid into a Post Office Cash Account.
This is a straightforward account from the Post Office designed specifically for individuals receiving pensions and benefits. Account holders will be able to collect their cash free of charge at any Post Office.
With this type of account, instead of using your book to get money from the Post Office, you will use a card. The card will replace your book and you will be issued with a Personal Identification Number (PIN) to be used with your card. Just as you cannot use your book elsewhere, you can only use your Post Office Card at the designated Post Office.
This account is designed for those individuals who want to take out all of their Benefits in cash on, or just after, the due date. With this type of account, arrangements are in place to allow a nominated relative, friend or carer to draw benefits or pensions on behalf of the recipient. Customers can apply to open a Post Office Card Account from January next year.
POINTS FOR YOU TO CONSIDER
Each individual's circumstances are different, however, some of the things you may want to consider when deciding which option to choose are:-
Convenience
Will you be able to get your money out when it suits you? Will you be able to get your money from a location that suits you? Will you be able to have your money collected by a relative, friend or carer?
Budgeting
Do you want your Benefits/Pens ion to be added to the rest of the money in an existing bank account, or do you want to keep it separate?
How will you keep track of the amount of your benefits you have used?
Will your option fit in with the rest of your budgeting methods? e.g. Electricity Cards or Phone Cards.
Do you need all the money in cash? -Remember, cash machines only pay out in round £10s.