Universal credit will be paid directly to you, so you need an account for the payments to go into. You can set up a:
You can set up a basic bank account at most high street banks, to store money and pay out of. You don’t usually have to pay a monthly fee for the account, or get offered an overdraft. You may get a debit card to make payments in stores and online and you should be able to set up a Direct Debit to pay your regular bills, including rent.
You can also set up a current account, which you may get an overdraft for.
Another option is to set up an account with a credit union (they’re small non-profit financial companies, set up by members with something in common to benefit their community).
Some credit unions also offer a current account, but you usually get charged a weekly fee if you withdraw money that week.
You can’t go overdrawn, as they don’t offer overdrafts, and you can run this account alongside your savings account with the credit union.
A credit union may also be able to help you manage your money. They can agree with you what regular bills you need to pay, make sure money is put aside and then arrange payments for you. You then know what’s left in your account for you to use.
If you’d like to join a credit union, click the following link to Find your credit union.
You can pay into and take money out of your account at any Post Office. You won’t be able to set up direct debits or standing orders, or take cash out from cash machines though.
There’s a lot of changes happening to get ready for Universal credit and Banks, Credit Unions and Post Offices are all looking at new types of account. We’ll let you know when we know more.