Many people in the UK rely on benefit payments to cover essential living costs, yet not everyone has access to a bank account. For individuals who are unable to open one, the Department for Work and Pensions (DWP) has put in place an alternative solution known as the Payment Exception Service.
As reported by DevonLive, this system allows eligible recipients to collect their state pension or benefits through alternative means, ensuring that those without a traditional banking arrangement are not excluded from receiving the financial support they need.
How the Payment Exception Service Works
The Payment Exception Service is designed for people who cannot open a bank account, rather than those who simply do not have one.
Instead of receiving benefits or pensions through direct deposit, eligible claimants can access payments through a payment card, an email with a voucher code, or a text message with a voucher code.
These payment methods can be used to withdraw cash from PayPoint locations or Post Offices during their opening hours.
However, payments must be collected within 90 days of being issued. If not withdrawn in time, the funds expire, requiring claimants to contact their Jobcentre or Pension Service to request a reissue.
Payment Limits and Collection Process
Each transaction through the Payment Exception Service is capped at £100. However, beneficiaries can collect multiple payments at once by using their payment card more than once or redeeming multiple voucher codes.
Recipients will still receive their full benefit entitlement, provided that the PayPoint or Post Office they are using has enough cash available in the till.
To claim funds, individuals must present an original identification document, as photocopies are not accepted.
Acceptable forms of ID include a valid UK driving licence, a current passport, a tenancy agreement, a recent utility bill (gas, electricity, water, or landline phone issued within the last three months), or a DWP letter confirming benefits (issued within the last three months).
If claimants are unable to collect their payment personally, a trusted person can do so on their behalf. In such cases, they must present the recipient’s payment card or voucher, the recipient’s proof of identity, and their own proof of identity.
What to Do if a Payment Card Is Lost or Damaged
If a payment card is lost or damaged, claimants must immediately contact the DWP’s Payment Exception Service to block the old card and request a replacement. More details about the DWP Payment Exception Service can be found on the official GOV.UK website.
