To receive benefits like Universal Credit, you’ll usually need an account that can receive automatic payments. Here’s step-by-step help and what to do if you can’t get an account.
What is a bank account?
A bank or current account usually lets you:
- receive your benefits and wages
- spend in shops
- withdraw cash at a cash machine
- manage your account online or using a mobile app.
- set up regular payments like Direct Debits and Standing orders so you can pay your bills and rent automatically.
You might also be able to:
- open it as a joint account
- borrow money using an overdraft.
There are usually fees or interest if you spend more than you have in your account, including if there’s not enough to cover a Direct Debit or standing order.
If you don’t meet the opening criteria, which might include a credit check, you’ll usually be offered a basic bank account instead. This usually has all the same features apart from a cheque book or overdraft.
Some credit unions also offer current accounts, usually with no credit check or overdraft. But you might need to pay a monthly fee for certain features.
For more information see our guides:
Use our Benefits Calculator
If you’re living on a low income or have had an income shock, use our Benefits Calculator to quickly find out what you could be entitled to
Step one: decide if you want to open a joint account
If you’re claiming Universal Credit and live with your partner as a couple, you’ll usually get a single payment for your household.
This means the money can either be paid into:
- a joint bank account in both of your names, or
- one of your individual bank accounts.
If you have children, the payment usually goes into the main carer’s bank account.
Only consider opening a joint account with someone you trust, as it could damage your credit score if they have poor credit and you could be responsible if they run up debt. If you’re worried your partner might control your money or misuse it, you can ask your work coach for separate or more frequent payments confidentially.
For more information see our guides:
Step two: compare different accounts and providers
Comparison sites are a good starting point if you’re trying to find a current account or basic bank account that’s right for your needs.
You can compare bank accounts at:
- MoneySavingExpert Opens in a new window
- Which?Opens in a new window
- Consumer CouncilOpens in a new window if you live in Northern Ireland.
Our Compare bank accounts tool also helps you view account features, fees, charges and the providers that offer basic bank accounts. If you apply for a bank account with one of these banks or building societies but are turned down, you should be offered a basic bank account instead.
For more information, see our guide Fee-free basic bank accounts.
Step three: open your account and set up bill payments
Once you’ve found an account you’d like to apply for, double check you meet the eligibility criteria. For example, some might require you to pay in a certain amount each month.
You’ll usually need ID to prove your identity, like a driving licence, passport, recent bills or official documents. If you don’t have the right ID, find out what to do if you can’t open a bank account
Before applying for a current account, it’s also worth:
- registering to voteOpens in a new window as some banks use this as part of their checks
- checking your credit score and correcting any errors.
If you already have an existing bank account, you can ask your new provider to transfer your balance and all your incoming and outgoing payments over.
For more information, see How to switch or close a bank account.
Set up automatic payments for your bills
Once your account is up and running, you can set up payments to pay your bills and rent automatically. It’s a good idea to set these up for the day after you normally receive your benefits or wages.
Find out more in our guides:
What to do if your application is refused
If you’re turned down for a current account, you’ll usually be offered a basic bank account instead. Alternatively, you could try a credit union current account as they often accept those turned down elsewhere.
Step four: what to do if you can’t open an account for your benefits to be paid in
Don’t worry if you can’t open a bank account, you can still get your benefits payments using the Payment Exception Service.
This lets you get vouchers that you can swap for cash at a Post Office or PayPoint outlet (often found in a corner shop). The vouchers are either loaded onto a payment card or sent by email or text message.
If you lose your payment card or it’s stolen, call the Payment Exception helpline so it can be blocked and a new one sent out to you.
For more information, including the ID you’ll need, where you can exchange your vouchers and contact details, see the Payment Exception Service at GOV.UKOpens in a new window
For more help, see our guide How to claim benefits or State Pension without a bank account.
