Universal Credit Red Tape Leaving Thousands of Hartlepool Residents Trapped....

Switching Banks almost always means claimant's have to attend their local Jobcentre in person to prove they are who they say they are

Department for Work & Pensions facing criticism, as Universal Credit Claimants Face Bank-Switching Obstacles Effecting Thousands of Claimants living in Hartlepool.

15th December 2025

Thousands of people in Hartlepool who rely on Universal Credit could be being unfairly blocked from switching bank accounts and accessing better financial deals, following warnings from Martin Lewis, founder of MoneySavingExpert.com.

In a formal letter sent on the 12th December to the Secretary of State for Work and Pensions, Martin Lewis warned that millions of Universal Credit claimants nationally face a complicated and bureaucratic process when trying to switch bank accounts — a process he says is unnecessary, stressful and out of step with modern banking.

What the Warning Is About

Under the Government-backed Current Account Switch Service (CASS), bank customers are meant to be able to switch accounts quickly and securely, with all payments transferred automatically.

However, Martin Lewis says that for many people on Universal Credit, the system breaks down. Claimants report being told they must attend face-to-face Jobcentre appointments, take physical bank cards or printed statements with them, or go through repeated verification checks — even though similar changes for other benefits such as Carers Allowance or PIP can be made remotely.

According to Martin Lewis, this has resulted in people abandoning attempts to switch banks altogether, fearing payment delays or even accusations of fraud.

He warned that as many as 8.3 million people on Universal Credit across the UK may be effectively excluded from switching bank accounts and benefiting from competitive deals that could help them manage their finances.

Its estimated that up to 9,000 people living in Hartlepool are claiming Universal Credit

Hartlepool has above-average levels of Universal Credit reliance, reflecting the town’s economic challenges and large number of low-income households.

Based on Department for Work and Pensions (DWP) data and local council statistics, it is estimated that around 7,000 to 9,000 people in Hartlepool are currently claiming Universal Credit in some form. That means thousands of local residents could be affected by the bank-switching barriers highlighted by Martin Lewis.

These include:

• Working people on low pay

• People with disabilities or health conditions

• Families with children

• Claimants using digital-only bank accounts

  
  

For Hartlepool residents already working long hours, being forced to attend Jobcentre appointments to verify a simple bank switch can mean lost wages, travel costs, accessibility issues, and added stress — particularly for those already in work or with mobility problems.

Real Experiences from Claimants

Martin Lewis said he was “surprised and concerned” by the volume of responses he received after asking claimants about their experiences.

Some said they were forced to take unpaid leave from work to attend Jobcentres. Others described having to spend money on taxis because of disability or distance. Several said the process left them feeling as though they were being treated as potential fraudsters.

Many reported giving up, and staying with unsuitable or expensive bank accounts, simply to avoid the risk of disruption to their Universal Credit payments.

Why it Matters..

Switching bank accounts can allow people to Access lower fees, Benefit from switching incentives, Move away from unsuitable or poorly performing banks & in some cases better manage their monthly bills and payments..

Martin Lewis argues that blocking Universal Credit claimants from doing this harms financial inclusion, reduces competition, and ultimately makes life harder for people who can least afford it — without saving the Government any money.

Calls for Change

The growing number of Digital Bank Accounts has caused reportedly caused significant issues for some UC claimants owing to the lack of a physical debit card.

In his letter, Martin Lewis urged the Government to urgently investigate the issue and consider reforms such as:

• Allowing remote or phone-based verification

• Accepting digital bank documentation

• Ensuring bank switches do not cause payment delays

• Issuing clear guidance for both claimants and Jobcentre staff

  
  

The Department for Work and Pensions has said "it will respond", stating that Universal Credit payments involve higher security checks due to their value, but did not deny that problems exist.