Millions Announced For Universal Credit Banking

Ministers are calling for a range of suppliers to explore the feasibility of new financial products to help benefit claimants budget and manage their money. The DWP is expecting interest from a range of financial providers, including high street banks, mobile phone operators and pre pay card providers, and has announced it is willing to invest between £80m and £145m. In a summary of its proposals the DWP estimates that ‘up to 2.5 million Universal Credit claimants’ will need additional support to manage their money during the transitional period. It says it wants to enable claimants to access financial products that offer budgeting support by ‘subsidising the cost of these products for an interim period of one year per claimant as they transition onto Universal Credit’. It adds: ‘At the end of the initial subsidised period DWP will withdraw the subsidy. The claimant will then choose whether they wish to continue using the account, with either themselves or a third party meeting the ongoing monthly cost’.  Read more on the NHF website.