More Than A Million People In Britain Do Not Have Bank Accounts Apparently.

[mikey4444]

http://www.bbc.co.uk/news/uk-politics-24821408

I understand that all benefits are now paid into bank accounts, rather than using the old -fashioned "book" in the Post Office. Is there anybody out there in AB Land that doesn't have a bank account ? I am genuinely interested in how they manage in Britain today if they don't have an account.

[factor-fiction]

I will read the article, but I'm not really surprised. Assuming it covers only adults there will be some pensioners, some people with severe disabilities, some people who are in institutions such as hospitals or prison, and some who have no fixed abode or can't get an account for whatever reason.
I couldn't manage without one

[Gromit]

Most people denied a bank account are unemployed or retired. They get heir pension or benefit on a smartcard which can be cashed at any PayPoint.

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@benefits/documents/digitalasset/dg_202116.pdf

[mikey4444]

Thanks FF. But most of the categories that you list are the very ones that are most likely to be claiming benefits, and therefore in need of a bank account !

[bednobs]

it actually really doesn't surprise me either - benefits can be paid inot a credit union account, or a building society account or a post office card account - all of which aren't bank accounts. There are lots of reasons why people would not want a bank account, or could not manage one

[mikey4444]

Thanks Gomit...I guess that these Post Office cards don't count as bank accounts, which I hadn't realised. Not sure how I would manage without my bank account, and I am by no means a wealthy man.

[mikey4444]

Thanks to bednobs as well !

[Gromit]

Credit Unions offer people without a bank account the facility to save or store their money. You buy shares with your money with which you can get a loan.

[factor-fiction]

Do prisoners get JSA/benefits paid direct to them while in prison?
Another factor may be that where two people live together they can probably get by with one account, especially if one of them is a housewife/house husband not claiming benefits.
And what about those traders who work 'cash in hand'?

[bednobs]

surely prisoners do not get JSA ff?

[factor-fiction]

I doubt it, bednobs, and certainly hope not- I was just responding to mikey's comment "But most of the categories that you list are the very ones that are most likely to be claiming benefits". Maybe he meant those in mental or other long term hospital care

[bednobs]

lol "have you been available for work"
"no, but parole willing, i will be in 2017"

[DrFilth]

mikey the lady near me who is on benefits had no bank or post office account when they stopped the giro payment scheme they arranged for her to have building society account
it is a special account where she can only take out what is paid in by the dwp

[MTbowels]

Eh, I really can't see the problem here. The DWP recommended method and first-choice is a Post Office Card account. No credit checks are made and everyone in the UK over the age of 16 is entitled to open one at the Post Office no matter if they have a bank account, poor credit history or anything else.

The DWP pay the vast majority of payments via this account using a cashpoint type card that requires a PIN Number on entry into the machines on every Post Office Counter. The Post Office assistant prints off the amount in the account, gives it to the account holder and he/she can withdraw all the money in the account or any other amount they desire.

That's it. It's not rocket science.

[MTbowels]

Despite the governments closure programme regarding Post Offices, none of us are really not that far from a Post Office. I'd imagine that a "client" of the DWP, without a bank/building society account would have to live in fairly unusual circumstances for special provision for them to be paid by any other method other than the PO Card account..

[New Judge]

What do the following two remarks have in common?

"There are lots of reasons why people would not want a bank account..."

"And what about those traders who work 'cash in hand'? "

[spudqueen]

All benefits are not now paid into bank accounts. There is something called the Post Office card account which benefits can be paid into. It can only be used in a Post Office (or a Post Office cash machine) to withdraw cash. The customer (or claimant) can't actually pay money into the account. These are issued to people on all sorts of benefit, from disability to pensions to child benefit. I work in a Post Office in a poorer area of town and there are many of my customers who do not have a bank account. They can end up paying more for services and goods because they don't have a bank account, eg you can have a cataglogue account and pay cash at a Post Office to pay the bill, often with a £2.85 charge on top, but people and companies can always make money out of the poor.

[pretty_snowdrop]

I know of a family who were recently left a very large sum sum of money. Two of the sons worked for a small firm, who still paid wages in cash and neither of them had a bank account. They had to open so the solicitor could pay in their inheritence. They are only in their forties!

[Gromit]

// What do the following two remarks have in common?
"There are lots of reasons why people would not want a bank account..."
"And what about those traders who work 'cash in hand'? " //

Nothing.

The majority of people who do not have a bank account, do not choose to, they are denied one. People with a poor credit rating are often refused by banks when they try to open an account.

People who work cash in hand usually do not do so exclusively. They normally have bank accounts, they just do not pay their entire earnings into it.

[EDDIE51]

I know an elderly man who refuses to have a bank account. He gets his pension from the Post Office by using a Post Office cash card , it is like debit card but only works for getting cash out of the Post Office. It was actually designed for people who refused to open a 'proper' bank account and is the nearest thing to the old post office book. He still keeps his savings under the bed in cash. ( yes I and others have tried to warn him but he just says 'I don't trust banks)

[EDDIE51]

If you are an undischarged bankrupt there are very few banks who will allow you to have an account at all. The co-op bank is one of the very few who do offer an account and I think Barclays have a basic card account you can have but that is it.