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How benefits and pensions are paid

Direct Payment into an account is the normal method of payment for benefits and pensions. It is a safe, convenient, and efficient method of payment. Find out how Direct Payment gives you flexibility to choose where and when to collect your money, and access a wide range of other financial services.

Advantages of using a bank/building society account

You can choose to have your money paid into one of a variety of accounts. These can be a basic bank account, current account, or a building society or credit union account.

Having an account gives you the flexibility to withdraw money from a variety of places when needed. This includes a wide range of banks, cash machines and the cashback facilities offered by many high street retailers.

Additionally, many high street bank accounts are accessible at the Post Office®. You can collect money from a Post Office branch using a current or basic bank account (if your bank has an arrangement with Post Office® Limited).

Post Office card account

Customers can also use a Post Office card account (POca). This is a simple account specifically designed for the payment of benefits and pensions from government departments. From 23rd March 2010, if you are a Post Office card account holder, you will be able to access your account via Post Office® branded cash machines. This is in addition to using the counter service.

How you can choose the right account

If you want to know more about choosing the right account to receive your benefit or pension, please contact the office dealing with your claim.

If you don't already have an account then the link below may also help you choose the right account to suit your needs.

If someone else collects your benefit

If you need help collecting your benefit or pension payment you can arrange for someone else to do it for you.

Nominating a helper to collect benefits or a pension for you

There may come a time in your life when you can still manage your finances but it's difficult to get to the bank. Or you may require someone to receive payments on your behalf. For such scenarios, you can nominate a helper, such as a trusted friend or relative, to assist you.

How to give someone else access to your account

Direct Payment is the normal way State Pensions, benefits, allowance or tax credit are paid into your account.

Most account providers will allow you to permanently or temporarily designate a helper to access your account on your behalf. You should contact your bank, building society or other account provider for instructions on how to do this.

If you cannot receive funds by Direct Payment

If you are unable to manage an account – please contact the office that pays you to discuss the options.

Making future arrangements – a power of attorney

There may come a time when, because you are incapable of managing your property and financial affairs or personal welfare, you will need someone to do this for you.

You can formally appoint a friend, relative or professional to hold a power of attorney that will allow them to act on your behalf.

What is a power of attorney?

A power of attorney enables you to choose a person or persons (called an attorney) to deal with your property and affairs. While a power of attorney ceases in the event of you becoming mentally incapable of managing your affairs, an enduring power of attorney will continue. It's important to remember that mental incapacity can happen to anyone at anytime eg by accident or through illness.

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