How to open a bank account for your benefit payments

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 offer current accounts, usually with no credit check or overdraft. But you might need to pay a monthly fee for certain features. 

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 bank 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. 

There are many options to choose from, including high-street banks and building societies with branches, online-only accounts, fee-based accounts with perks such as insurance or cashback and fee-free basic bank accounts.

To help, our free compare bank accounts tool lets you view account features, fees and charges. Or we've step-by-step help in how to choose a bank account.

If you’d find current account reviews helpful, see:

• Which? bank account guidesOpens in a new window

• MoneySavingExpert’s best bank accountsOpens in a new window

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 vote with your local councilOpens 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. 

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. 

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. Some of them offer an online service, or very local banking points.

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 ServiceOpens in a new window on GOV.UK.

For more help, see our guide How to claim benefits or State Pension without a bank account.