Bank Charges Not Allowed on Certain Benefits!

Section 187 of the Social Security Administration Act 1992

There is an Act of Parliament which over-rides banks taking charges from your account if you are in receipt of any of the following benefits.

• Income Support
• Tax Credits
• Child Benefit
• Job seekers allowance
• Incapacity benefit
• Disability living allowance
• Attendance Allowance
• CSA payments
• Other DWP payments.

These social security benefits are granted to stop hardship and are designed to meet basic day to day needs, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245).

Section 45 of the Tax Credits Act 2002 Chapter 21 part 1 is an identical provision to the said section 187 of the 1992 Act.  This stipulates that the banks can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.




Write or contact your bank and quote the above Act.

Tags: Benefits, ClaimBackYourUnlawfullyStolenBankCharges, SocialSecurityAdministrationAct1992, UnlawfulBankChargesOnBenefits, YourRightsRevealedAboutBankCharges, bankCharges

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Thank you Barry

I found a template letter that Im going to send off to them. Do I send it to my main branch or to head office?

I would suggest that you send it to the branch that holds your account.


Thank you, I will do that straight away and let you know how I got on.

Here is the pdf of the Social Security Administration Act 1992

hi debroah where did u get the template letter 

thanks xx

Hi gwp


I have the link in my documents but unfortunately I am not at home till Tues. I will send you the link then.







for this information,now as i have always suspected the banks are acting unlawfully under those circumstaces.



You first ask your bank for all statements. The letter to send goes like this 'Dear Sir, I request statements under the data protection act, showing your account no and sign it.
Once you have received these statements pick out relevant statement showing the unlawful charges and get them photo copied. You then phone the relevant benefits agency and ask them to send you a letter stating when you started receiving said benefits up to present date.Make a copy of this and send this along with statements and template letter with your personal details off to your bank/building society.
Here is the template letter that you send to your bank to claim back charges

hiya does this apply if your working i claim working tax credits, childcare tax credits and child benefit as well as housing benefit as i dont earn enough.



Hi Roz

It applies to all the benefits listed listed at the top.However you need to get a letter from the benefits agency responsible for each of the benefits you receive confirming when you started receiving the befits til present day. Plus you need copies from the bank of all the charges they made to your account. Then send this to your branch of the bank, registered preferably.




Hi, I have just read your enlightening message and wish to explore it, as i get benefits myself.

My question is: Does this apply to Joint accounts too? Although i am disabled and do not work, my wife is working full time and does not get any benefits at all: Can i still claim?

Many thanks, and i will be sharing this fantastic (though shamefully hidden) information to everybody i know, and to the many thousands i don't know in occupy.

Hi Paul

Welcome to the site.

I am not sure whether they will accept the fact that it is a joint account, but hey it is worth a try and you haven't got anything to lose really have you?

Just make sure that you keep a copy of everything, so that you know when you sent off letters and documents. Only send them copies, as you probably won't get the originals back. You need to send that letter I have uploaded on to this thread, and add your own details to it.You also need to send copies of the statements where they charged you.Plus you need  a letter from the benifits agency that states when you started said benefits up to date.

Let me know if you hear anything back from them positive or negative, as it will help others on here to either carry on this way or change tactics.

Good luck



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