The petition of residents of the constituency of Edmonton and Winchmore Hill.
Declares that petitioners have significant concerns about the proposed closure of the NatWest branch in Angel Edmonton and its impact on reducing access to face-to-face banking services locally and leaving workers at risk of redundancy; notes that the Government are a significant stakeholder in NatWest; further notes that the closure of bank branches especially impacts older and disabled people, those who are digitally excluded without access to internet banking, and small business owners; and further declares that this can make it harder for many people to manage their finances at a time when millions of families are already struggling to make ends meet.
The petitioners therefore request that the House of Commons urge the Government to act to protect face-to-face person banking services, ensure that the decline in banks can be stopped and even reversed, and that accessibility to banking services is kept accessible to all.
And the petitioners remain, etc.—[Presented by Kate Osamor, Official Report, 23 October 2024; Vol. 755, c. 378.]
[P003012]
Observations from the Economic Secretary to the Treasury (Tulip Siddiq):
The Government thank the hon. Member for Edmonton and Winchmore Hill (Kate Osamor) for submitting the petition on behalf of her constituents regarding the closure of the NatWest Upper Edmonton branch.
The Government are sorry to hear of her constituents’ concerns about the proposed closure of the Upper Edmonton NatWest branch and the subsequent challenges that they may have in accessing face-to-face banking.
Banking has changed significantly in recent years, with many customers benefiting from the ease and convenience of remote banking. None the less, let me assure the hon. Member that the Government understand the importance of face-to-face banking to communities and high streets, and are committed to championing sufficient access for all as a priority. Access to financial services is key to ensuring that all citizens can both contribute to and benefit from growth in the UK.
This is why the Government are working closely with banks to roll out 350 banking hubs, which will provide individuals and businesses up and down the country with critical cash and banking services. The UK banking sector has committed to deliver these hubs by the end of this Parliament.
Banking hubs offer basic counter services provided by Post Office staff, allowing people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.
It may be useful if I set out the mechanism by which banking hubs are deployed in more detail. Banking hubs are a voluntary service that were developed by the financial services sector in the context of legislation to protect access to cash services under the Financial Services Act 2023. Their roll-out is overseen by Cash Access UK (CAUK), a not-for-profit company set up and funded by the banks for the purpose of co-ordinating banking hub delivery. LINK—the operator of the UK’s largest ATM network—assesses a community’s needs regarding access to cash services in the event of the closure of a core cash service, or if LINK receives a request directly from a community. Where LINK considers that a community requires additional cash services—that will depend on multiple factors, such as whether there is another bank branch or cash service nearby—CAUK will provide a suitable shared solution. This solution could be a new deposit service or a banking hub for cash users in that community.
Over 80 banking hubs are already open and CAUK, which oversees banking hub roll-out, expects 100 hubs to be open by Christmas. I am also focused on working with industry to ensure that the range and quality of banking services provided in hubs provide customers with the support they need.
Regarding the specific closure of the NatWest Upper Edmonton branch, Financial Conduct Authority guidance expects firms to consider carefully the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. The guidance expects firms to pay particular attention to the impacts on vulnerable customers, such as those who are digitally excluded, disabled or elderly. This seeks to ensure that the implementation of closure decisions is done in a way that treats customers fairly. Where firms fall short of expectations, the FCA may ask for closures to be paused or other options to be put in place.
The customer information pack that NatWest has published for the Upper Edmonton branch closure highlights that customers can use alternative NatWest branches in Palmers Green, which is 2.6 miles away; Wood Green, which is 3.3 miles away; and Stoke Newington, which is 3.5 miles away. The nearest free-to-use cash machines can be found at Halifax, 128-132 Fore Street; Tesco Express, 137-149 Fore Street; and BP, 57-59 Fore Street.
The Government’s minority shareholding in NatWest Group is managed at arm’s length and on a commercial basis by UK Government Investments. The Government do not intervene in the operational decisions of NatWest, which are the responsibility of the NatWest board.
Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking and via the post office. the post office banking framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 post office branches across the UK.