THE WITHDRAWAL of a money transfer and payment system from an app used by schools could leave Chepstow parents out of pocket.
The sQuid digital payment service was withdrawn from the ReachMoreParents app last week but refunds appear to only be available to those with more than £10 in their accounts.
Chepstow Comprehensive School sent a letter to parents earlier in March warning the service was being “unexpectedly” withdrawn from the app from 4pm on Friday, March 14 and advising them how to request a refund of money in their accounts.
But Councillor Armand Watts said he is aware of one parent who’s requested refund was rejected as the balance in her account was £7.27.
A message in the accounts section of the squidcard.com website stated: “You are unable to withdraw funds as your balance of £7.27 is lower than our minimum refund amount of £10.”
Cllr Watts, who represents Bulwark and Thornwell in Chepstow, said he feared many parents will have had less than the minimum amount and he intends lodging a complaint with the financial regulator and raising the issue with Monmouthshire County Council.
The Labour councillor said: “It’s obvious to many teachers, care workers and public representatives that there are a growing amount of families across Chepstow who are already facing considerable financial pressure.
“Therefore, it’s very likely that many parents have less than £10 in their school dinner account because they’re living week by week, month by month on very tight budgets.
“Whilst I will be having conversations with Monmouthshire’s legal advisers my immediate intention is to register a formal complaint with the Financial Ombudsman regarding sQuid’s obstruction to refund Monmouthshire school children’s dinner money.”
In a letter to parents Chepstow headteacher Kelly Waythe said the decision sQuid would no longer be available was made at “very short notice” by the school’s provider.
She apologised and said the school was working with the firm that manages its “cashless catering system” to transition to its “iPay payment provider”.
The letter said parents should “rest assured sQuid payments will remain accessible for you to request a refund of any monies remaining in your child/ren’s catering purse” until April 14, with parents advised to make claims “as soon as possible” after March 14.
John Gallacher, of sQuid, told the Local Democracy Reporting Service: “sQuid announced some time ago that it was making an orderly withdrawal from the UK market, as we will be focusing on international activities.
“Our refund process for parents is continuing as normal and in line with our published terms and conditions.”
The company’s sQuidcard website now displays a message it is no longer operating its UK education business and details on how parents can access their accounts.
Its terms and conditions confirms any “unused value” on an account can be redeemed at any time “provided: the balance on your sQuid account is at least £10, after any relevant charges.”
Monmouthshire County Council and Chepstow School were contacted for comment.
Newport City Council and Torfaen Borough Council said they weren’t aware of any of their schools using sQuid while Caerphilly Borough Council said its catering service doesn’t use the service but four secondary schools have their own independent arrangements, rather than the council’s services, but it doesn’t know what the systems the four use.
