Nearly one million adults in the UK do not have access to a bank account according to Consumer Focus, a government funded watchdog.

The study follows the government’s new launch into a reform of mainstream banking. It also raises concerns that these people pay more for bills as they do not receive the discounts for payment by direct debits, another negative was that they could not use the internet for shopping or services.

The study was based upon 50 in-depth interviews with consumers who do not have a bank account and included those that found themselves to be in the most difficult of circumstances such as bankruptcy, homelessness and bereavement.

The report highlights several common barriers that prevent consumers taking advantage of the benefits of mainstream banking services; these include existing debts, poor credit rating and language problems.

Consumer Watch suggests one way forward might be for the Post Office to add on some simple services to its Post Office Card Account which is used by people claiming benefits, such as ATM card and a savings option.

British Bankers' Association (BBA) said that they opened about 35,000 basic bank accounts last month.

There are also those who just do not want a bank account and prefer to work with cash.

If you need to open a basic bank account and are worried that you may be refused then take a look at our list of which banks and building societies offer basic bank accounts, we also detail what will bar you from opening an account as well as what services you can expect to get from them.

Read more at Basic Bank Accounts