Bank Charges are illegal if you are on benefits

[ChrisCrook1]

I was interested to see an article and forum thread elsewhere that suggested that due to existing legislation, banks are not allowed to charge anyone receiving benefits. These were listed as including :
• Income Support
• Tax Credits
• Child Benefit - must include many millions of people
• Job seekers allowance
• Incapacity benefit
• Disability living allowance
• Attendance Allowance
• CSA payments
• Other DWP payments.
The relevent legislation is Section 187 of the Social Security Administration Act 1992 and also Section 45 of the Tax Credits Act 2002 Chapter 21 part 1.
Is there anyone out there with a legal mind that can confirm how this may work because it looks like a good opportunity for us carers to make sure our carees haven't been charged unnecessarily and get them back some much needed funding ?Chris

[ChrisCrook1]

I've done some more digging around and this looks like this question did the rounds back in 2008-9.
I can't find the original details on the Number 10 website but a copy of their response to a petition was :

"The purpose of the Social Security Administration Act 1992 Section 187 and section 45 of the Tax Credits Act 2002 is to prevent people’s benefit money being at risk by it being assigned over to a third party in settlement of a debt. It is not intended to prohibit the application of bank charges. Bank charges are in the nature of an expense, and are incurred by the holder of the account; tax credits and benefits are payable in order to help customers meet their expenses, and as such it is legitimate for banks to deduct charges from the balance of an account held in that bank, whether the money paid into the account comes from tax credits, benefits or other sources, such as earnings."

I think that answers my question --- unfortunately
Chris

[Scally]

I havent paid any bank charges or credit card charges for a long time - learned that lesson the hard way a long time ago. So, to all those folk who do pay charges, thank you very much, you are subsidising my own free banking and have been doing so for decades.