Treasury Minister Alex Allinson says scrapping the cash benefits payments system will save money paid to the Post Office but cost government more in bank charges.
In the House of Keys today he faced questions about the end of the MiCard scheme which is used by 3,000 people.
From the end of December next year, they'll need a bank account to receive benefits payments.
But he told MHKs the Treasury had spoken to banks about worries people can't open accounts:
US visitors need "increased caution" visiting Island, says State Department
Warning over Port Erin Beach work
Last bus strike of March continues today
Weather threatens four ferry crossings, cancels two
Part of Glencrutchery Road shut for water work
Will new NHS safety rule be brought in here?
MHK has urgent question about Steam Packet fuel charges
Future of TT course restaurant to be decided