To receive Universal Credit next year, you’ll need to have a bank, building society or credit union account. This is so that the payments can be made automatically each month.
Having an account will also mean that you can manage your monthly budget and set up regular payments to pay bills automatically each month.
Benefits of setting up an account:
- pay money into your account
- take out money from cash machines
- pay rent, service charges, bills and transfer money out of your account
- keep track of your money, interest and charges by looking at your monthly statement.
The account you choose must be able to receive Universal Credits automatically.
The different account options are:
- current account
- basic bank account
- ‘jam jar’ account (also called a budgeting account)
- some types of credit union account like credEcardPlus
- prepaid cards
The Money Advice Service takes you through your choices in more detail.
Setting up an Account
You will need:
- Proof of identity (eg. Passport, drivers licence, letter from a responsible person such as a teacher)
- Proof of address (eg. rent statement, water or electricity bill)
How can I set up an account?
You can set up your account by filling out an application form at the Bank or Building Society branch, on the internet, by phone or by post.
You will need to complete an application form with personal details such as your address and contact details as well as your monthly income.
Make sure you understand the fees and charges on the account and don’t be afraid to ask if it is not clear.