Do I have to have a bank account?

I’ve been told I have to have a bank account for my Universal Credit payments – is this true?

You do not have to have a bank account to claim Universal Credit – but it makes it easier.

If you already have a Post Office Card Account then you can have your Universal Credit paid into that instead. Your adviser at the Jobcentre (called your Work Coach) may encourage you to open a bank account or credit union account instead. This is because the government would prefer you to have your Universal Credit payment paid into a bank account and there could be advantages to you to do this.

If you are unable to open a bank account and don’t have a Post Office Card Account, then you may be able to use the Payment Exception Service – see below.

Opening a Bank Account

It’s best to get some advice on which bank account is best for you. Have a look at the Money Advice Service website to see what sort of account suits you best, or talk to an adviser about this.

If you are claiming as a couple consider setting up a joint account because a joint claim for Universal Credit can normally only be paid into one account and you may both need access to the Universal Credit payment.

If having the Universal Credit payment into one account is inappropriate talk to you work coach about splitting the payments.

Payment Exception Service

If you can’t use a bank account, credit union account or Post Office Card account, ask your Work Coach or ring the UC Helpline to see if they will allow you to be paid through the ‘Payment Exception Service’.

You will either be sent a card, a voucher by email, or a text message with a unique reference number. You can use this to withdraw up to £100 at a time from any PayPoint outlet that offers the Payment Exception Service.

You will need to show proof of ID (not a copy) such as:

  • Valid UK photo or paper driving licence, or
  • Current passport, or
  • Current gas, electricity, water or landline phone bill (less than 3 months old), or
  • Council Tax bill, or
  • Tenancy agreement.

If you want someone to collect your money for you, they need:

  • Your payment card or voucher
  • Your proof of identity
  • Their proof of identity.