TIP: If you have a bank account but it is overdrawn, and you are due a Universal Credit payment, contact your bank and state that you wish to exercise your ‘first right of appropriation’. This is where the bank has to allow you to use your Universal Credit to pay for essential goods and services rather than to clear any unauthorised overdraft.
I’ve been told I have to have a bank account for my Universal Credit payments – is this true?
Universal Credit is usually paid into a bank account, building society account or credit union account.
If you are unable to open a bank account, then you may be able to:
- Use the Payment Exception Service – see below for how this works;
- Nominate the bank account of a trusted friend or relative, who can pass the money on to you*.
*DWP will normally want to pay into an account that is in your name, but they may agree to pay into someone else’s account, usually only for the first Assessment Period. After that you would need to have your own account. It will be up to you to make sure that you receive the correct payment from your friend/relative.
Example:
Linette is making a claim for Universal Credit. She already has a bank account so will have her Universal Credit payments paid into that account.
Example:
Paul is making a claim for Universal Credit. He doesn’t have a bank account. He used to have his Income-Related Employment and Support Allowance paid into a Post Office account. When that was closed he asked them to pay into his brother’s bank account for a while, who passes the money on to him. His Housing Benefit goes straight to his landlord. Now Paul’s son, age 8, is moving back to live with him – he can’t start a claim for Child Tax Credit, so Paul needs to claim Universal Credit. He opens a Credit Union account and has his first payment paid into that. He will see a large jump in how much he gets paid, as not only will it now be a monthly amount (rather than fortnightly), it will include extra to help him support his son and also to pay the rent. He will need to make sure he pays the rent himself.
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 Helper 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 your work coach about splitting the payments.
See Alternative Payment Arrangements for more information.
Payment Exception Service
If you can’t use a bank account, building society account or credit union 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.