Tynwald's unanimously voted to extend the MiCard system for another six months.
The U-turn in the sitting today, Thursday, November 20, comes after government planned to axe the cards at the end of this year.
Chief Minister Alf Cannan says the Treasury will issue new cards to those without bank accounts from January, so they can keep receiving benefits.
In an amendment to a motion by Douglas East MHK Joney Faragher, the court voted to have Treasury look into payment options and report back within six months.
Stop putting knives in recycling, says council
Bee Gees to release limited-edition box set
Northern Irish politician criticises Manx visa rules
Elective surgical unit opens at hospital
Piling rig on TT course tonight
10-day bus strike from next weekend
Yellow snow warning issued by forecasters
Ramsey harbour keeper completes 3,000-Mile Atlantic crossing