PEOPLE who receive state pensions or benefits have just nine months to set up an account into which their money will be paid from April 2003.

Around 15 million people collect their state hand-outs from post offices using order books or giros, but this is to be phased out next spring.

From then, people will be required to have an account into which the cash will be electronically mailed.

Peter Carr, Chairman of Postwatch said: "This change affects some of the most vulnerable groups in our society, including three million people who currently do not have bank accounts. It is vital that there are no negative affects on customers as a result of these enforced changes.

"Customers must be fully informed about how they can continue collecting their payments at a post office if they choose to do so, as some 15 million people currently do."

There will be a new Card Account provided by the Post Office, or people can use their normal bank accounts for the depositing of their benefits.

July 10, 2002 14:00