Asked by: Jas Athwal (Labour - Ilford South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking with Cabinet colleagues to help improve the provision of (a) physical banks and (b) banking hubs in Ilford South constituency.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
Banking has changed significantly in recent years with many customers benefiting from the ease and convenience of remote banking. However, the Government understands the importance of face-to-face banking to constituents and businesses in Ilford South and across the UK and is committed to championing sufficient access for all. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 200 hubs have been announced so far, and over 100 are already open.
The Financial Services and Markets Act 2023 granted the Financial Conduct Authority (FCA) the responsibility and powers to seek to ensure the reasonable provision of cash withdrawal and deposit facilities. Under the FCA’s regime, LINK, the operator of the UK’s largest ATM network, is responsible for undertaking access to cash assessments. When a cash access facility such as a bank branch closes, or if LINK receives a request directly from a community, LINK assesses a community’s access to cash needs and can recommend a new service, such as a banking hub.
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. The Government protects the Post Office network by setting minimum access criteria. These include ensuring that 99% of the UK population lives within three miles of a Post Office and 90% of the population within one mile.