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

Importance of Paying to Multiple Accounts

We asked those same respondents who used separate bank accounts how important is it for them to be able to pay different benefits into separate bank accounts. Half (50 per cent) said it was very important. 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 in the future. Combined, 15 per cent said it was mildly or very important to them, with 8 per cent saying it was very important.

Reasons for wanting to use multiple bank accounts

Using open text questions, we asked those who said it was mildly or very important for them both at present and in the future to pay different benefits into different bank accounts to tell us why.^[7] 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.

"I can budget better."

"One is my own personal allowance and spending money, the rest are for household/family expenses."

"It means that I have more control, I can decide what I am using each payment for. For instance save Child Benefit, use universal credit for everyday stuff, use PIP for additional needs, like clothing, additional costs, travel, care, etc."

Respondents also talked about practical considerations, such as struggling to access local banking services, or that the money was for another person.

"I do not do internet banking so it's is important that someone can get/collect my money on my behalf if I desire at a local branch. Some banks have closed down their branches."

Some respondents also felt that being able to have payments put into different accounts could be important for vulnerable people. For example, multiple accounts could provide a degree of financial protection to those lacking capacity or in a domestic abuse situation.

"If someone was being controlled by a partner, it would be useful to spilt the benefit so the control eases."

The last reason mentioned by respondents was security concerns, for example, the possibility of sole bank account being hacked.

"It's worrying to have only one account. These days accounts can be hacked and if I only have one then it would cause problems with access to money, direct debits etc. which I would find very difficult to deal with."

Other comments

Finally, we asked all respondents if there was anything else they would like to say about benefits being paid into different bank accounts. Similar to the previous closed questions, most 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. This included the practical reasons set out above, such as wanting to split money between partners; protecting vulnerable people, with coercive control being a concern for those in a domestic abuse situation.

"If it suits other people better to help them budget then they should be allowed to have their benefits paid into different accounts."

"While I'm perfectly happy to have my benefits paid directly to my bank account I know there are people who this would be a massive problem for. I understand that to have the facility to have different payments made to different accounts has been the first step on the ladder to escaping domestic violence/abuse. So I'd hope this would always be available to anyone that needs it for whatever reason."