SPECIAL bank accounts to help people manage their benefits could be created in Derby.
Currently, people living in social housing have their rent paid directly to their landlord through the benefit system.
But from April next year, they will start to receive a new “universal benefit” directly and will have to pay their own rent and bills from that.
However, research of new Derby Homes tenants between June and September showed that of the 442 new tenancies, 40 did not have access to a bank account.
The Government is therefore looking at working with a bank to set up “Jam Jar” accounts for vulnerable claimants. The accounts would allow people to split their benefits into separate pots for spending, savings and automated bill payment. Government funding would enable the accounts to be free for a year but would cost between £12 and £14 a month after that.
Derby Homes, which manages council housing in the city, is working with a regional Credit Union Consortium, to set up Jam Jar accounts for new and existing tenants. It is hoped the service can be developed in time for the new benefit system. Original article
Yes Minister comment
You do the Math… If benefit recipients will be charged between £12 & £14 a month for their bank account it will leave many worse off. Furthermore, it seems that the poorest are being charged a higher premium than any other section of the population.
This doesn’t even begin to consider the financial challenges that will ensue between tenants and landlords
