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PIP: Can you receive PIP without a bank account? What is the Payment Exception Service? | Personal Finance | Finance


PIP is extra money which is given to some people to help them with everyday life. Eligible persons have an illness, disability or mental health condition which impacts their life. PIP claimants are usually paid every four weeks into your bank, building society or credit union account. But can you receive PIP without a bank account and what exactly is the Payment Exception Service?

What is PIP?

PIP is money for people who have extra care needs or mobility needs due to a long-term illness or disability.

This payment is replacing Disability Living Allowance for people aged 16 and above but under State Pension age.

PIP is designed to help adults to face extra costs due to their condition, whether it is a physical, sensory, mental, cognitive, intellectual illness or any combination of these.

READ MORE: PIP recipient wins right to be considered for Universal Credit

Can you receive PIP without a bank account?

If you do not have a bank account to collect benefit or pension payments, you can use the Payment Exception Service.

But the Payment Exception Service is only available in some very limited circumstances.

The Payment Exception Service is a way to pay benefits to people who cannot use bank, building society, credit union or Post Office card accounts, replacing the Single Payments system from March 2018.

Payment Exception Service users will be sent a payment card and can use the card to collect the payment from any PayPoint outlet which offers the service.

If you do not have a card, you will be sent either:

  • A voucher by email
  • A text message with a unique reference number.

To collect a payment, you must show your card, vouchers or text message at the PayPoint outlet.

You can find PayPoint outlets in your local newsagents, convenience store or supermarket.

Those receiving benefits or pension payments through the Payment Exception Service must claim the payment within 30 days of it being sent out and there is a limit of £100 for watch payment collection which is made.

To collect a payment, you must show proof of your identity.

Copies of your identification documents are not acceptable and examples include:

  • A valid UK photo or paper driving licence
  • A current passport
  • A gas, electricity, water or landline phone bill (this must be less than three months old).

You can ask someone else to collect your money for you, but they will need your payment card or voucher, your ID or their own ID.



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