Work and Pensions written question – answered at on 3 September 2012.
To ask the Secretary of State for Work and Pensions
(1) what assessment he has made of the suitability of basic bank accounts for the budgeting needs of recipients of universal credit;
(2) what financial products have been considered to assist recipients of universal credit to adjust to monthly payments and budgeting;
(3) what assessment he has made of the likely level of availability of basic bank accounts for recipients of universal credit.
We are working with a range of banking and financial product providers to make financial services accessible and supportive to potential universal credit recipients across the income spectrum; particularly to low-income households who may have been excluded in the past.
Basic bank account are very widely available and will support the budgeting needs of many universal credit claimants, as they can receive money from multiple sources, including wages as well as benefits, and have the necessary transactional capabilities necessary for paying rent and household bills by direct debit or standing order.
We recognise that some claimants will need additional help to adapt successfully to monthly payments. This may take the form of budgeting advice and skills development, but may also include enhanced financial products with additional budgeting functions, such as ‘jam jar’ accounts.
Yes1 person thinks so
No1 person thinks not
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