WFA cut - a different approach. Bank switching!

What_time_is_it

Here's an idea. If everyone under state pension age who is concerned about / against / angry about the WFA cut could help one person over state pension to switch a bank current account (or two) between now and Christmas, we could have this year's allowance effectively paid for everyone via the banks.

Maybe even set up a burner account, make the switch, and then close it down again so that nothing overall changes apart from extra cash. I think I'm going to suggest this to my elderly neighbours. I could do a switch for each of them, close it all down again and they'd get more than the WFA would have been this winter.

mebu60

What is this target account you have in mind that doesn't require a minimum number of direct debits, doesn't require use of the current account switching service or have any other hurdles like a minimum period of operation before payment? And how much is it paying? And how exactly are you going to do the switch for them? 

What_time_is_it

I'm going to suggest to the couple who are my neighbours that they could each do a switch to Natwest. It pays £180 for switching, doesn't need any direct debits, pays within 7 days after you have paid in £1,250. Then you can close it. I'm going to suggest that they each open a very basic account with their normal bank and stick £1 in it. Then switch them both to Natwest, pay in £1,250, take the £180 bonuses, and then close the accounts. £360. And I'll help them do it. That's the plan!

If they don't fancy it, then fair enough. Worth asking them though.

born_again

What_time_is_it said:

Here's an idea. If everyone under state pension age who is concerned about / against / angry about the WFA cut could help one person over state pension to switch a bank current account (or two) between now and Christmas, we could have this year's allowance effectively paid for everyone via the banks.

Maybe even set up a burner account, make the switch, and then close it down again so that nothing overall changes apart from extra cash. I think I'm going to suggest this to my elderly neighbours. I could do a switch for each of them, close it all down again and they'd get more than the WFA would have been this winter.

You are aware that when using CASS, that the burner account is shut down as part of the process.

What_time_is_it

Sorry, I didn't word that very clearly! 
I meant, close down the final account (Natwest) at the end of the process.

EssexHebridean

It's a lovely idea, but the conversation MUST be had to ensure that they aren't relying on applying for any credit in the following 3 - 6 months, as the new account will leave a trace on their credit file that could affect things. 

born_again

What_time_is_it said:

Sorry, I didn't word that very clearly! 
I meant, close down the final account (Natwest) at the end of the process.

Why close it. Just keep it open. You can then switch again later for more bribes.

cannugec5

If my neighbours proposed this to me I would be very concerned that they were trying to hook me into some scam. You helping them open other bank accounts sounds dodgy. They may not qualify to open these accounts- especially if they are reliant on the WFA and already on low income ( but not so poor that they actually qualify) 
We will miss the WFA this year, having had it previously, but I will not be doing any switches to make up the deficit. 

Middle_of_the_Road

cannugec5 said:

If my neighbours proposed this to me I would be very concerned that they were trying to hook me into some scam. You helping them open other bank accounts sounds dodgy. They may not qualify to open these accounts- especially if they are reliant on the WFA and already on low income ( but not so poor that they actually qualify) 
We will miss the WFA this year, having had it previously, but I will not be doing any switches to make up the deficit. 

I agree with you about it sounding suspicious, but there's no reason to dismiss bank switching out of hand.

Anyone who can operate a computer can easily initiate a bank switch. 

Spoonie_Turtle

Middle_of_the_Road said:

cannugec5 said:

If my neighbours proposed this to me I would be very concerned that they were trying to hook me into some scam. You helping them open other bank accounts sounds dodgy. They may not qualify to open these accounts- especially if they are reliant on the WFA and already on low income ( but not so poor that they actually qualify) 
We will miss the WFA this year, having had it previously, but I will not be doing any switches to make up the deficit. 

Anyone who can operate a computer can easily initiate a bank switch. 

I can confirm that's not true.  My Dad can just about use his tablet to look at e-mails and watch TV programs, but he'd need someone to guide him through doing something as serious and complex as switching banks.  My Nan used to use her PC for e-mailing, and the very basics of an encyclopaedia programme, but she couldn't browse the internet independently.

Then there's the issue of digital exclusion through lack of access, not just capability.  It's estimated from a study last year that c.38% of over 65s don't own any form if computer.  So whether they'd be capable of using one or not, they don't have access anyway.
https://www.centreforsocialjustice.org.uk/library/left-out


It's a nice idea, to use MoneySaving techniques to 'earn' the equivalent of the WFP, but not something everyone is savvy enough to be able to do.  And those who possibly need it most may well be the least able and most reluctant to accept help.  But I suppose it highlights the importance of establishing relationships at an appropriate pace and cultivating trust with those who do need help, to eventually get to a place where they might accept the offer of this kind of help in the future.  Especially since the money in this scenario would be from banks so they can't feel like they're 'taking it away from others who need it more' like so many feel with public funds.