Do I need a bank account? | Shropshire Council

Yes. It's a requirement that your direct payment is paid into a separate bank account that isn’t used for any other payments. The only exception is if the direct payment is a one-off payment which can be paid into an existing account. A separate direct payment account also makes it easier for you to send us your bank statements showing how the money is being used.

You can open a new account, or maybe you have an existing account that you could use if it's empty and not being used for anything else. You can choose whether to use a high street bank current account or a Just Credit Union direct payment account.

The benefits of each type of account are shown below:

Services: Provide statements
High street bank: Monthly/online
Just Credit Union: Annually or when requested

Services: Card/BACS payment facility
High street bank: Yes - both
Just Credit Union: No - only pay invoices

Services: Share monitoring information with the council
High street bank: No
Just Credit Union: Yes

Services: Take responsibility for making payments
High street bank: No
Just Credit Union: Yes

Services: Work with your payroll provider
High street bank: No
Just Credit Union: Yes

Services: Able to use flexibly
High street bank: Yes
Just Credit Union: Yes

Take a look at this video from Just Credit Union explaining their direct payment bank accounts: