Social Security experience panels: paying benefits into different bank accounts - main report

Summary

Two thirds of respondents (65 per cent) said they had experience of being paid two or more benefit payments at the same time.

Of those respondents, just under nine in ten (88 per cent) said they have always had all their benefits paid into the same bank or building society account. 9 per cent said they have sometimes arranged for separate benefits to be paid into different bank or building society accounts and 3 per cent said they always arranged this.

Of the small number of respondents who said they sometimes or always arranged for separate benefits to be paid into different accounts, over half said they do this to keep payments separate if they are for different purposes. Around one in five said they did it to split payments between themselves and their partner. The remainder of respondents said they had other reasons but did not specify.

Of those same respondents, half said it was very important for them to be able to pay different benefits into separate bank accounts. Over a quarter said it was mildly important and under a quarter said unimportant.

We asked all other respondents the same question. Over eight in ten (85 per cent) said that it was unimportant for them to be able to pay different benefits into separate bank accounts. Combined, 15 per cent said it was mildly or very important to them, with 8 per cent saying it was very important.

We asked those who said it was important for them to split payments into different bank accounts to tell us why. The most common reason given by respondents was that the ability to have benefits paid into separate accounts allowed for the management of money in terms of budgeting, ensuring all bills are paid and putting money into savings accounts.

The other reasons why respondents said it is or would be important to them to split payments into different accounts can be grouped into the following broad themes:

• Practical reasons such as struggling to access local banking services.
• Multiple accounts providing a degree of financial protection to vulnerable people such as those lacking capacity or in a domestic abuse situation.
• The money being for another person, for example, benefits being paid to another person.
• Security concerns, for example, the possibility of sole bank account being hacked.

Overall, a majority of respondents stated a personal preference for having only one bank or building society account. This is because they only have one account, feared that having different benefits paid into different accounts would confuse matters or be a complicated process, or they did not see the need. Other respondents reiterated the reasons why they personally would find it important, whilst a few acknowledged there were situations where multiple bank accounts would be appropriate for other people, even if they did not want the option themselves.