Martin Lewis: Pension secretary – make bank switching easier and less stressful for millions on Universal Credit
Millions of people on Universal Credit face a complicated and bureaucratic bank-switching process that could prevent them accessing accounts and deals, MoneySavingExpert.com (MSE) founder Martin Lewis has told the pensions secretary in a letter sent on Friday 12 December. Martin has urged the Government to look into a range of issues after hearing from many MoneySavers who have struggled with the process.
Martin Lewis asks the pensions secretary to 'swiftly investigate'
Martin sent a letter to Pat McFadden, secretary of state for the Department of Work and Pensions (DWP) on Friday 12 December, detailing the issues he's seen and calling for change. On Monday 15 December, Martin also sent a copy of the letter to industry trade bodies UK Finance and the Building Societies Association, as well as to the Current Account Switch Service (CASS), which facilitates bank switching.
Here's a copy of Martin's letter in full:
To: Rt Hon Pat McFadden MP, Secretary of State, DWP
CC: Lucy Rigby KC MP, Economic Secretary to the Treasury, HM Treasury
12 December 2025
Dear Secretary of State,
Up to 8.3 million people on Universal Credit (UC) may effectively be excluded from switching bank accounts, so they can't take advantage of deals, incentives and accounts that could improve their financial situation (without any cost to the Government). This is bad for competition, bad for consumers and bad for the economy. I would ask you to swiftly investigate and fix this.
There are a range of issues, including the fact that in order to switch banks on UC, some – possibly many – are told they must get an in-person appointment at the Jobcentre. This adds hassle, cost and, for the millions on UC who are in work, possible loss of income (never mind additional impact on those with accessibility issues). It also looks to be an inefficient use of Jobcentre resources.
This runs counter to the whole idea of simple one-click switching. Plus, the UC system does not seem to have been fully updated to incorporate digital banks, some of which lack physical cards or printed statements, making the whole system cumbersome.
Switching banks is done via the Current Account Switch Service (CASS), a Government-supported service that already has fraud checks embedded. It is meant to be a speedy, seamless, no-hassle process that simply transfers an individual's banking from one bank to another.
The bureaucratic process of UC seems to, without cause, pervert the ease of the process, and add barriers that many people, especially those who work and are on UC, tell me simply make it not worth the time.
Having had it raised a couple of times by consumers, I put a call on my social media channels and was surprised and concerned to see how widespread the issue was. Many described the process as stressful, inconvenient and unnecessary. Some gave up and stuck with their existing account. A number have told me they will never attempt to switch banks again.
I suspect this is an issue that hasn't been raised with you before, and you will be as keen as I am to look to investigate how widespread the problem is (something only Government can collect official data on) and then address the wider issue. I've attached a more detailed briefing for you, by my team at MoneySavingExpert, including example case studies, and information on why we suspect this doesn't seem to have been picked up before. I'd be happy to meet and discuss this if it would help.
Kind regards,
Martin Lewis
Founder and Chair, MoneySavingExpert.com
'Too frightened to change banks again'
On 20 October 2025, Martin put out a call on his social media channels, asking people to share how they found the process of switching bank accounts while on UC. People told him about several issues with the process – from mandatory in-person Jobcentre appointments that force them to take unpaid leave from work, to barriers preventing digital banking.
Here are some of the examples Martin received:
Nightmare. I ended up writing to my MP. Loads of security checks which is fine, but then insisted I had to take new bank card into the office, so had to take unpaid time off work to do that. Absolute joke, when I just had to put new details in for Child Benefit.
Changed banks with PIP [Personal Independent Payment] over the phone, simple. With UC, even though I can barely walk, I had to attend Jobcentre for an interview and take all my ID and bank card. Cost me £40 in taxis just to sort it and my anxiety was through the roof. Won't be changing banks again.
I tried at the beginning of the year but they wanted me to travel to the Jobcentre to confirm the card. I live quite far away and can't use public transport or drive because I'm wheelchair bound so I had to cancel it and stay with the same bank.
It's terrible, you're made to feel like [you're committing] fraud. Took us weeks to sort out and we had to go into the Jobcentre with ID, even though ID had been seen at the point of claiming. We want a joint account but are too frightened to change banks again.
Martin suggests solutions to make the process more accessible
MSE wrote in its background briefing for the DWP that the issue of bank switching for UC claimants appears to be falling into a gap between the Government and the banking industry and does not seem to have been subject to any detailed investigation. The briefing added that "true inclusion means all people must be able to choose, use and switch financial products easily".
Martin has urged the Government to consider the following points of action, which he argues would make the process of switching banks smoother for those on UC:
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Make remote verification and phone verification available to those on UC. Allow people to upload evidence – such as bank statements and verification documents – via their UC log online if they have switched through CASS. And mirror phone verification processes used for other benefits for simple changes.
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Offer flexible appointment times and make the experience more accessible. If face-to-face verification is necessary, offer walk-in or online appointments, not rigid slots. Plus, provide home visits or remote options for disabled claimants.
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Accept digital banks. Update the rules so sort code / account number verification doesn't rely on physical cards or printed statements.
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Ensure that when people change their details or verify their bank switch, their payments are not delayed. Address the issues within the system that have prevented people from being paid on time, as normal.
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Issue clear, consistent guidance on how to switch banks when claiming UC. This guidance should be targeted towards both UC claimants and Jobcentre staff.
In addition to conducting a review of the bank switching process, Martin has suggested the Government request a report from its Financial Inclusion Committee, which could present solutions of its own.
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