Halifax customers receiving Universal Credit have been given an update on their benefit payments as their accounts move under the Lloyds brand.
Customers have been reassured after one worried Halifax customer asked what would happen to their Universal Credit payments following the bank's decision to phase out the Halifax brand. The customer asked Halifax on X how Universal Credit could be paid into their account if the benefits system only had their Halifax account details.
Halifax response on Universal Credit
Halifax responded: “If your Halifax account is moving to Lloyds, your Universal Credit payments will continue as normal as your account details will remain the same.
“Benefit payments have been considered as part of the transfer process.”
The reassurance is likely to be particularly welcome to households dependent on Universal Credit, where a delayed payment can quickly create financial difficulties.
What is happening to Halifax accounts?
Lloyds Banking Group is phasing out the Halifax brand in England, Wales and Northern Ireland, with Halifax branches and services gradually being brought under the Lloyds name. But customers are not being given new bank account details as a result of the change.
Halifax says existing account numbers and sort codes will remain the same. Customers' cards and PINs will also remain unchanged, while regular payments such as Direct Debits, standing orders and money paid into accounts will continue.
No need to notify payers
This means people receiving salaries, pensions or benefits should not normally need to tell the organisation paying them that their bank has changed simply because of the Halifax-to-Lloyds transition. The changes will happen gradually, with customers being moved to Lloyds' digital banking services as their accounts transfer.
The Halifax name will eventually disappear from branches and digital services, but the underlying bank account details will remain unchanged. For Universal Credit claimants, this means payments should continue to be directed to the same account despite the change in branding.
Scam warning for customers
Halifax's response specifically confirms that benefit payments have been taken into consideration as part of the transfer process. Customers should nevertheless be wary of scammers attempting to exploit the Halifax changes.
Anyone receiving an unexpected message asking them to provide banking details, move money or click a link should treat it with caution and contact the bank through an official channel.
