Timeline

“In my experience, the first thing was to open an online account. Some online banks will take a biometric card. When you download the app, you immediately get your account number and sort code, so you can apply for universal credit. Then, I applied for a provisional license. You have to be careful when you apply to both of these. Make sure you confirm your universal credit first, before you send your ID for your provisional license, because it takes a few weeks for them to send it back and you won’t get paid until you send your ID to universal credit” Magpie Mums

List of Definitions

There are a few common terms that you will see a lot. Here is a list of some of the most important terms and what they mean

Account number	A 10-12 digit number given to your bank account. You can find your account number on your online banking page or on bank statements.
Card Number	A 16-digit number with that is found on the front of your debit/credit card.
Credit Card	A credit card doesn’t spend your money. It spends the bank’s money and you must pay it back. This means you can spend more than is in your account, but you might be charged extra for doing this, especially if you are late paying the bank.
Credit Score	A number that records how likely you are to repay your debts. High credit scores are better as it means financial products such as overdrafts and credit cards cost less.
Debit Card	A debit card is a card that lets you take out money from ATMs and make payments in stores or online from your account.
Financial Service Compensation Scheme (FSCS)	An organisation set up to protect the money you put in bank accounts. If you have a current or basic account, the FSCS will pay you up to £85,000 if your bank goes bankrupt.
National Insurance Number (NI)	The number makes sure that the National Insurance contributions and tax you pay are properly recorded on your account. It also acts as a reference number for the whole social security system.
Overdraft	An amount of money you can spend even when you have no money in your account. It is like a small loan from your bank. Overdrafts are often not free, so you need to be very aware what the costs are before using one.
Personal Identification Number (PIN)	A PIN is a 4-digit number that is given to you with a debit card. This is used when taking out money from ATMs or when making in-store purchases with your card. Never share your PIN with anyone as it could be used to commit fraud.
Security Code	A 3-4 digit number found on the back of your debit/credit card in the signature section. This number will be required for nearly all online payments. The code provides an extra layer of security to safeguard you from fraud.
Sort Code	A 6-digit number that is used to identify your bank. You can find your sort code on your online banking platform, on bank statements or on your debit card.
Standing Order	When a fixed amount that you choose is paid from your account to another person or organisation. This is different from the direct debit as the amount that is paid is the same each time.

How to read electricity meters

At some point, your energy provider will ask for electricity meter records. If they do not have this, they will estimate your usage and you may not be charged the correct amount. Here is a useful guide for how to read your energy meter.

“With patience, you will achieve whatever you want to. You’ve got to be strong and patient and keep pushing.” “The whole process looked a bit daunting to me, but just talk to professionals and follow the steps given in this booklet and you’ll be fine.” Magpie mums say:

Finding the cheapest provider

The best way to save money on energy bills is to switch providers, or search for the cheapest deal available. This website lets you compare energy providers. If you are struggling to pay your energy bills, you can apply for help through the British gas and energy trust. You can find information on saving money on phone and Wi-Fi (broadband) bills here.

Which bills are more important

If you have more than one debt you need to pay, the order in which you pay off the debts is important. Paying your bills and debts in the right order can help you save money and avoid legal trouble. Paying your bills and debts in the right order can help you save money and avoid legal trouble. Money Advice Service suggests that you classify your debts as follows:

When paying off non-priority debts, try to target the most expensive debt first. This will help you save money in the long term:

Pay the debt with the highest interest rate shown on your monthly statement or loan agreement first.
Check that you won’t be charged any penalty or default charges for overpaying.
Pay as much as you can afford without breaking the terms of other credit agreements you have.
Once you’ve paid your most expensive debt, move on to paying off your next most expensive one.

Use Money Helper’s bill prioritiser to find out the best order to pay your debts.

“The whole process looked a bit daunting to me, but just talk to professionals and follow the steps given in this booklet and you’ll be fine.”

“With patience, you will achieve whatever you want to. You’ve got to be strong and patient and keep pushing”

“It’s advisable to get a receipt booklet. You can never tell when you will need to prove something. Make sure you have a receipt if you pay someone to do something”

Magpie mums say:

Staying safe online

You might be worried about the safety of online banking, but banks have worked hard to make sure that your money is safe. Here are some tips for staying safe when banking online:

Use unique passwords and PINs that only you know – do not share these, your bank will never ask you to.
Use secure Wi-Fi networks to bank online, not public WiFi
Always double-check who you are sending money to. You must be sure that you are sending money to the right person for the right reason.
Contact your bank immediately if you spot a transaction on your account that you did not make.

Identifying and avoiding scams:

Scammers are clever and can target anyone. Here are 5 warning signs to look out for:

Does it seem too good to e true?
Are you pressured to pay quickly or unusually, or transfer fees up front?
Are there errors or typos that look suspicious?
Contacted out of the blue by someone you don’t know?
Asked for personal information?

Sometimes it is difficult to tell if something is a scam or not. If you are concerned, it is best to be careful and take the time to check. Many banks’ websites will also have advice on the latest scams and how to avoid them.

Received a text you think is a scam? Forward it to 7726 for free to report it. You can also report suspicious emails with your email provider and block the sender.

Never click links in suspicious messages or reply. Never share any personal details.

If you are a victim of a scam, report it to your bank and Action Fraud. You can find more information on scams in Money Helper’s Beginner’s Guide to Scams and in the FCA’s guide on how to protect yourself from scams.

Making Payments

Online banking lets you transfer money between accounts almost immediately. You can send money to another account in your name, to family and friends, or to companies when you need to pay bills. Direct debits and standing orders are useful ways to manage your payments and make sure that your bills are paid on time. A direct debit lets a company take money from your account on a certain date. This is useful when you need to pay regular bills, such as for water, gas or electricity. The company will take the amount of money that you owe, but it will tell you in advance how much they will take and when. You should contact the company that you want to pay to set up a direct debit. You will need your bank account details to fill out a form in person, online or over the phone. A standing order tells your bank to send an exact amount of money from your account to another account on a regular basis. Standing orders can also be useful for making regular payments to other accounts, such as to pay rent to your landlord. You are in full control of how much will be paid, when and how long for. To set up a standing order, you will need to fill out a form through your online bank account or over the phone with your bank. You will need the name, sort code and account number of the person you want to send money to.

Saves time – you don’t need to remember to pay a bill.	You need to make sure there is enough money in your account when the direct debit or standing order will be taken. If there is not enough money, you could be charged extra by the bank.
You will get money back for any incorrect payments for direct debits only.	You must remember to cancel standing orders when you want to stop paying someone regularly.
You can cancel a direct debit or a standing order at any time through your online banking account or by contacting your bank.	Sometimes you might think you are setting up a direct debit, but it is actually a recurring payment or continuous payment authority (CPA). Be careful if companies ask for the long number on your card instead of your sort code and account number. This will mean they can take money whenever they think they are owed.

“Always use direct debits if you can, so you don’t forget to pay and are charged. If you can’t use direct debits, make sure you put the dates when you’re supposed to make payments in your phone calendar.” Magpie Mums say:

Paying your bills with online banking

What is online banking?

Online banking means accessing and managing your bank account through the internet on your smartphone, tablet or computer. Many banks have free mobile-banking apps which make it quick and easy to manage your money without needing to call or visit your bank. With most banks, you can use online banking to:

Check how much money is in your account
Check the recent payments into and out of your account
Send money to other accounts and pay bills
Check your monthly statements
Set up and manage direct debits and standing orders
Send and receive messages from your bank
Some banks have extra features. For example, show your pending transactions
(payments that you have made but haven’t been taken from your account yet)
and what your balance will be once these payments are complete. Sometimes,
you can also set up notifications on your phone to tell you when payments
have been made into or out of your account.
You can access monthly statements online or receive a copy through the post.
It is useful to have paper copies of your statements to be used as proof of
address.

Making payments

Online banking lets you transfer money between accounts almost immediately. You can also send money to family and friends, or to companies when you need to pay bills.

You can make regular payments through direct debits and standing orders:

Direct debits let a company take money from your account on a certain date. It is useful when paying regular bills.
Standing orders tell your bank to send an exact amount of money from your account to another on a regular basis.

You need to make sure there is enough money in your account when these payments are taken or else you could be charged extra by your bank.

Saves Time	Make sure there is enough money in your account when the direct debit or standing order will be taken. If there is not enough money, you could be charged extra by the bank.
You don’t need to remember to pay a bill	You must remember to cancel standing orders when you want to stop paying someone regularly.
You will get money back for any incorrect payments for direct debits only.	Sometimes you might think you are setting up a direct debit, but it is actually a recurring payment or continuous payment authority (CPA). Be careful if companies ask for the long number on your card instead of your sort code and account number. This will mean they can take money whenever they think they are owed.
You can cancel a direct debit or a standing order at any time through your online banking account or by contacting your bank.


Magpie Mums say: “Always use direct debits if you can, so you don’t forget to pay and are charged. If you can’t use direct debits, make sure you put the dates when you’re supposed to make payments in your phone calendar.” “I’m used to it. It’s easy on the phone. I try to avoid going to banks.”

Open an Account

Before setting up an account anywhere, you should check that the account provider is regulated by the FCA. To do this click the link here and search for the provider on the Financial Services Register. We also recommend checking if the provider is covered by the FSCS (Financial Services Compensation Scheme). To check if your provider is covered, click here.

The FSCS protects your money up to a certain amount if the bank fails.

There are different ways you can open a bank account. For banks with a local branch, you can book an appointment. Other banks will let you open an account online. Whichever way you choose, there are some documents you must have available:

Proof of identity
Proof of address

There are some examples of what you can use for . Try to have as many examples of these documents as you can. You will not be allowed to use the same item for both proof of identity and address, so be prepared for this. Do not let anyone else use your accounts.

Bank accounts:

Current accounts
Basic Bank Accounts
Basic Savings Accounts

Where to bank

It’s useful to spend some time choosing which bank you want to open an account with. Things to consider when choosing your bank are:

Is there a local branch near you?
What accounts do they offer?
What protections do they provide?
Does the bank offer the option for paper statements if you need them?

It’s important to make sure you are not paying for features that you do not need. You should not have to pay to have an account.

This is why Magpie Mums say having a bank account is important:

“When I first applied, I couldn’t get paid universal credit until I provided a bank account.”

“For receiving universal credit and if you find a job, you need an account for your salary to go through.”

Where to Bank

Where to Bank

There are several banks in Westfield Stratford City shopping centre near to the Magpie Project’s base. You can see the full list of banks here. To see what types of accounts are on offer you will have to check the bank’s website. Look for either basic or current accounts. Remember you should not have to pay to have an account.

It is recommended by most banks that you go into a branch if you are a refugee or asylum seeker and want to open a bank account. In person they may be able to accept alternative forms of ID/proof of address if you don’t have the standard ones.

Table:

Bank Examples	Forms of Identity Needed
Metro Bank	Asylum seekers can apply for a cash account and/or savings account. This requires an Application Registration Card (ARC), proof of address and confirmation of asylum seekers support allowance or other income.
Lloyds	You can apply for a Classic Current account with a BRP, ARC or a Home Office Immigration Status document. Refugees and asylum seekers can apply for a ‘Classic current account’. This includes an arranged overdraft. Fees are charged if you go into your overdraft.
Nationwide	You can get a ‘FlexBasic account’ (basic bank account) and an ‘Instant Access saver’ (basic savings account). They accept BRP, ARC and Home Office Immigration Status document.
HSBC	You cannot open a bank account if you are from outside the EU. They accept BRP but NOT ARC. They accept BRP but NOT ARC.
Monzo	Refugees can open a current account with a BRP and their UK address. However, Monzo do not accept ARC. You can get your benefits or salary (depending on your employer) paid into your Monzo account 1 day earlier.

Overview of bank fees/charges:

You should not be charged to open an account or send or receive money.

With a Current account if you have an overdraft then you will be charged interest on the amount you go over and you will have to pay this back.
Some banks may charge you for a replacement if you lose your bank card.
Fees will be charged if you send money outside the UK. You may also be charged for sending money in a foreign currency . • You can withdraw cash for free from most cash machines.

Red Textbox:

You can use Money Helper to compare fees and charges for all banks. First click ‘Start to compare current accounts’ then click on the ‘filter’ button. Filter it to just ‘Standard current accounts’ and ‘Fee-free basic bank accounts’. You can also search the charges and fees for your specific bank provider on their website.

Current Accounts

Current Accounts

Current accounts are the most common bank accounts in the UK. Nearly all banks will offer a free current account, depending on your credit score. Current bank accounts allow you to:

Pay money into the account either personally or from wages/benefits.
Withdraw money from the account at an ATM with a card.
Set up online payments such as direct debits and standing orders.
Complete in-store payments with a debit card.
Apply for an overdraft (depending on credit score).
Apply for a credit card (depending on credit score).
It’s important to make sure you are not paying for features that you do not
need.
If, for some reason, you are not allowed to open a current account because of
your financial position, then you should still be able to open a basic bank
account. You will need to check to see which banks offer one.
A basic bank account is a current account that does not let you have an
overdraft. This protects you from accidently getting extra bank charges.

Types of Bank accounts

Current Accounts allow you to:

Pay money into the account either personally or from wages/benefits.
Withdraw money at a cash machine
Set up online payments such as direct debits and standing orders.
Complete in-store payments with a debit card.
Apply for an overdraft or credit card (depending on credit score).

If you are not allowed to open a current account because of your financial position, then you should still be able to open a basic bank account. You will need to check to see which banks offer one.

Basic Bank Accounts allow you to:

Deposit money
Withdraw money
Transfer money

However, you cannot:

Go into an overdraft (go below 0)
Access credit e.g. a loan or credit card
Write cheques
Some basic bank accounts may not let you set up direct debits

Basic Savings Account allows you to:

Put your money aside in a separate account that earns interest
It is also easily accessible, so you take money out whenever you want.

Proof of Address

Proof of address is something that proves where you live. It’s generally a document from a trusted source that has recently been sent to your home address.

Government-issued letters

Council tax
Benefits statements
HM Revenue & Customs (HMRC)
Department for Works & Pensions (DWP)
Marriage or civil partnership certificate

Company-issued letters

Utility bills
Insurance certificates
Tenancy agreement
TV licence
Bank statements

Proof of address documents can be split into two types:

Government-issued letters
Company-issued letters

Remember to always use printed bills and statements which are not older than 3 months

“Proof of address is very challenging, especially when you’ve just got status. You’re probably not in accommodation yet so haven’t had any bills or anything. You might have to wait for a bill. One bank accepted a housing letter but not all banks would accept that.”

“Try and find your old letters. You never know when you will need them. Don’t throw away important papers (anything that can

prove who you are and what you’ve been up to) and keep them somewhere. I needed proof of address for the past 5 years. Imagine if I was th

rowing things away. Keep letters for hospital appointments and from school etc.”

Magpie Mums say:

Proof of identity

Proof of identity is something that proves who you are. It will most likely be an official document with your full name, date of birth and a photo.

Examples of proof of identity:

Biometric residence permit (BRP)

Once you receive legal permission to stay in the UK, you will usually get a BRP. Your BRP includes your name, your date and place of birth, your ﬁngerprints, a photo of you, your immigration status and information about your access to public funds.

If you lose your BRP or it gets stolen, you must report it and apply for a replacement within 3 months. If you don’t do this, you could be fined up to £1,000 and made to leave the UK.

Passport:

You can use a valid passport as proof of identity. If your passport has expired and you want to renew it, your country’s consulate should be able to assist you.

Provisional driving licence (PDL):

You may be able to use a PDL as a proof of identity or address. You can apply for a PDL online which costs £34. After a successful application, you will get your provisional license and your identity documents posted back to you separately. Find out more here.

Magpie Mums Say: “Make sure you confirm your universal credit first, before you send your ID for your provisional license, because it takes a few weeks for them to send it back.”

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Applying for Benefits

Once you have opened an online account, you can now apply for benefits. The main benefit to apply for is usually universal credit. You can apply for it here.

The application can take time to complete and you will be asked to provide several documents. These include:

Proof of identity
Proof of address
Evidence of dependent children
Bank account details
Evidence of housing costs

If you can’t provide any of these needed for your claim, you must book an appointment with an adviser to discuss this. You may be asked to provide other types of evidence instead. You can check which benefits you are entitled to, how much you can expect to receive, and how to get them using this website.

Magpie Mums Say:

“I was with another charity project, and they helped me apply for universal credit and housing benefit. It was difficult when I was alone, but if you get help it’s not difficult.”