Access to Banking Hubs: Hertfordshire

Debate between Gagan Mohindra and John Hayes

Wednesday 25th June 2025 Westminster Hall

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

I beg to move,

That this House has considered access to banking hubs in Hertfordshire.

It is a pleasure to serve under your chairship, Sir Desmond. I thank Clementine Manning from my office for the extensive work she has put into researching for this speech and many of my other contributions to the House. I urge colleagues to be gentle with me; this is my first Westminster Hall debate, and I have yet to learn how to do these things properly. I am grateful that the hon. Member for Strangford (Jim Shannon) is here to show me the way, with hopefully an intervention in due course.

Access to banking services is essential for everyone across the country, and more and more our rural and semi-rural areas are seeing their access to banking services reduced. That is a particular issue for those who are unable to use technology to access online banking, and I know that many who are able to use online banking still feel more reassured if they are able to carry out banking activities face-to-face. Having seen the immensely positive impact that increased access to banking services through the post office has had in Rickmansworth in my constituency of South West Hertfordshire, I am campaigning for the establishment of a banking hub in Abbots Langley, another area in my constituency, to ensure that as many of my constituents as possible are able to access these essential services. I appreciate that everyone else here wants the same.

Hertfordshire in particular has felt the impact of the withdrawal of banking services, as, despite there being over 160 banking hubs now opened, just four are in Hertfordshire, with none in my constituency. Rural areas are twice as likely to depend on their local post office for cash and banking services, and it is essential that people in those areas are not left behind. Post offices have always been, and remain, critical assets to our communities, providing essential services. I have had the pleasure of meeting local postmasters in Abbots Langley and Rickmansworth, as well as visiting a Royal Mail distribution centre, to learn more about the sheer volume of service provided by their hard workers. From speaking to those postmasters, the essential role that they play in supporting our communities in all ways is clear. With many people unable to use technology, or simply more comfortable with face-to-face provision, the provision of banking hubs is just one of those essential services.

In the UK as a whole, 99% of the population live within three miles of a post office branch, as do 97.9% of the UK’s rural population. Post offices also make up more than 66% of all branch-based cash access points in the UK. That is particularly relevant because of the decline in the number of bank branches. This is not just an issue in Hertfordshire or my constituency; across the UK, we have seen 6,200 bank or building society branch closures since 2015. In my constituency of South West Hertfordshire, 89% of banks have closed since 2015, leaving us with only a Nationwide in Rickmansworth.

[Sir John Hayes (South Holland and The Deepings) (Con)]

My hon. Friend is right that this is a problem felt across Britain, as banks abandon their customers and close branches in my constituency in Crowland, the Deepings, Holbeach, Long Sutton and Sutton Bridge. The key thing about this issue is that it affects those least able to bank online; it also affects all of us who believe that banking should be an experience where people meet other people and personal service counts. I thank my hon. Friend for this debate. I call on the Minister to have more banking hubs, as the Payment Choice Alliance has requested—I hope she will say that when she sums up.

[Mr Mohindra]

My right hon. Friend has obviously had early sight of my speech, because I was going to get on to exactly that about human interaction, but I will let colleagues hold off for a few minutes while I carry on the main body of my speech. As my right hon. Friend said, the situation is deeply desperate, but sadly, not unique to South West Herts. I know other Members in this House will be feeling similar circumstances, as one in seven constituencies across the UK have only one bank or no bank at all.

Access to cash is essential, and it is important that we retain the ability to withdraw and deposit cash to support that, particularly as that allows those who do not use online banking to keep an eye on their personal finances. The post office supports this vital service and is essential for people in my area. On average, £1.6 million is withdrawn from post offices in my constituency every month, while £3.5 million is deposited. Although the post office provides an amazing service, a banking hub in a post office gives people proper support. We must prevent the closure of post offices, many of which are now run by a single person and are not necessarily profitable. It would be a great damage to all our areas if post offices were to close too.

Although post offices such as the one in Rickmansworth have stepped up to provide greater banking services than those normally available, we cannot expect our constituents to rely on post offices to replace the banks if there is no banking hub in place, as they do not provide the same level of service. Although Rickmansworth is fortunate to have some banking services available via the post office, as well as in the Nationwide branch, since I was elected in 2019 South West Hertfordshire has lost NatWest, Barclays and Santander in Rickmansworth.