In this section:
- Child Benefit rates
- When is your next Child Benefit payment due?
- When to expect your first Child Benefit payment
- Understanding your Child Benefit Award Notice
- Child Benefit payments stopped or gone down?
- How Child Benefit, tax credits and Guardian's Allowance are paid
- How to change your bank account details for Child Benefit payments
- Child Benefit overpayments
- You haven't received your usual Child Benefit payment
How Child Benefit, tax credits and Guardian's Allowance are paid
If you receive Child Benefit, tax credits or Guardian's Allowance, your money will usually be paid straight into an account using a system called Direct Payment. The types of account you can use are shown below. This is a safe and secure way of paying you and it means that you don't have to pick up cash in person.
Accounts you can use to receive payments
The account will need to be either:
- in your name
- in your partner's name
- both in your own and your partner's names
- in the name of someone acting on your behalf
- jointly in your own name and in the name of someone acting on your behalf
There are several kinds of account you can use to receive payments.
Bank and building society accounts
These are the most flexible. Depending on the type of account you have, you'll be able to withdraw money from cash machines, use cheque books and debit cards or pay bills by direct debit. Some accounts pay interest and some allow you to withdraw cash over the counter from the Post Office®.
Alliance and Leicester accounts
These accounts replaced the Girobank accounts and you can make deposits or withdraw money free of charge at local Post Offices.
National Savings & Investments (NS&I) Accounts
Alternatively, you could open an Investment Account or an Easy Access Savings Account. These work like normal savings accounts from a bank or building society and are suitable for all kinds of Direct Payment.
Post Office® card account
You can only have benefit, State Pension and tax credit payments paid into this type of account. This account may suit you if you want a simple account that won't let you go overdrawn and you don't have any other bank or building society account.
Opening a new account
Bank and building society accounts
To open a bank or building society account you can either visit the branch or, in some cases, you can open an account online.
Banks and building societies usually need some proof of identification, such as a passport, a driving licence or a Council Tax bill. It's best to check with the bank or building society to see what they need.
NS&I Accounts
You can open an Investment Account or an Easy Access Savings Account:
- over the counter at the Post Office®
- by sending an application form (available at the Post Office®)
You can also open an Easy Access Savings Account:
- online at the NS&I website
- over the phone by calling Tel 0500 500 000, lines are open 7.00 am to midnight, seven days a week
Find out more about the Investment Account on the NS&I website
Find out more about the Easy Access Savings Account on the NS&I website
Post Office® card account
If you have ticked the Post Office® card account box on your Child Benefit claim form we will get in touch with you to see if the Post Office® card account is right for you. If it is, we will send you a letter of invitation which you will need to take to the Post Office ® to open the account.
If you are completing your tax credits claim form and you want to open a Post Office® card account, please call the Tax Credit Helpline on Tel 0845 300 3900 or textphone 0845 300 3909 and we will send you a letter of invitation which you will need to take to the Post Office ® to open the account.
Accounts you can't use
There are some accounts that you cannot use for Direct Payment. These are children's accounts, some mortgage, business and building society accounts that use a passbook and NS&I accounts other than the Investment Account and the Easy Access Savings Account.
ISAs (Individual Savings Accounts)
We don't recommend having your Direct Payments made into an ISA account. This is because there is a limit on the amount that can be paid into these accounts and if you go over this limit, the bank or building society will reject the payment.
Can your payments go into a Child Trust Fund account?
Direct Payments cannot be made into a Child Trust Fund account.
More useful links
How to change your bank account details for Child Benefit payments
