A PLAN to prevent new benefits claimants from receiving Universal Credit through a Post Office card account will “hit the poorest the hardest”, a councillor has claimed.

Colchester councillor Tim Young claimed plans are afoot to scrap the use of the simple card account for Universal Credit payments.

The accounts are used to collect pension and benefit payments and are opened via a simple application form.

Mr Young said from next month, new claimants will not be accepted for Universal Credit if they only have a Post Office account. H

e was also informed current claimants using the accounts have until March next year to switch.

He said: “We have a meeting for the St Andrew’s Information Network Team which brings together agencies to share and exchange information.

“A financial inclusion manager with Colchester Borough Homes said they had an announcement.

“They had a briefing from the Department of Work and Pensions in which this was announced. “There are many people in my ward on benefits who just have a simple Post Office account.

“Most banks won’t accept them and many do not have the necessary identification to set up an account.”

“There were people from the council and from charities working in the area at the meeting and all of them were totally shocked and bemused by this.”

In a direct appeal to Colchester MP Will Quince, a minister at the Department of Work and Pensions, Mr Young said:”Please advise what a new claimant is meant to do in these circumstances. “I would urge you to reconsider this decision and the ramifications it will have.

“I hope you realise if this goes ahead many more people will have to rely on food banks and charity just to exist and the number of evictions through non-payment of rent will soar.”

A DWP spokesman said there is no set date for scrapping the use of the card account.

“The card account is and was always intended to be a temporary stepping stone into a mainstream bank account, the vast majority of which are accessible from the Post Office,” he said.

“People who switch to a bank account will still be able to visit their local Post Office branch to withdraw their cash.

“We are committed to delivering a replacement service, ensuring those who need cash payments will be able to access them in their local area. We will open the tendering process in due course.”

“There is not currently a set date for Universal Credit to no longer allow Post Office Card Accounts.”

But a document released by the Department of Work and Pensions and seen by the Gazette clashed with this statement.

It confirmed new claimants will not be able to use a Post Office card accounts to access their benefits from February 1.