Bank Closures and Banking Hubs

Naushabah Khan Excerpts

Thursday 5th June 2025 Commons Chamber

[Naushabah Khan (Gillingham and Rainham) (Lab)]

I thank my hon. Friend the Member for Blyth and Ashington (Ian Lavery) for securing this important debate.

Access to cash is important, but it is only one part of the story. The closure of bank branches strips communities across our country not just of access to money, but of access to advice and support services that cannot simply be replicated online. It goes further than that. For some elderly residents this is about a sense of community and purpose, such as the weekly trip with friends to interact with others, plan a food shop, go to a supermarket or even visit friends.

I remember when I was a child, when my grandfather was due to make his regular trip to the bank, he would get suited and booted, have a haircut and tell us all proudly that he was off to the bank. It was also the highlight of my week, because I always received a £5 note afterwards.

In my constituency of Gillingham and Rainham, I was pleased to announce only last week that we will be getting a banking hub, following a recent campaign. For clarity, we do have a Nationwide on site at the minute. I have heard directly from residents about how much this means to them. I have received numerous letters describing their struggles when they have not been able to access banking services. Many residents have described long journeys to neighbouring towns, often relying on friends or public transport just to withdraw cash or speak to somebody in person.

Other residents have spoken of the confusion and anxiety caused by using online banking that they neither trusted nor understood. We are talking about people who find themselves in effect locked out of the system simply because they do not use an app or a smartphone. These are real people in our communities, not a small minority. According to Age UK, more than 2.5 million people over 65 have never used the internet, and the access to cash review found that around 10 million UK adults would struggle in a cashless society. Many of them also lack digital literacy or the infrastructure to bank online. This includes people with disabilities, carers, those for whom English is not a first language, and people living on low incomes who cannot afford broadband or mobile data. We should not expect them to adapt to a system that was not designed for them in the first place.

The reality is that high street banks have for some time been taking decisions based on commercial viability rather than community need. I understand that banks are not charities, but the Government do have a responsibility to ensure that no one is cut off from basic services because they are not digital or because they are not profitable. If we want to prevent digital exclusion from becoming a permanent feature of our society, banking hubs must be part of a national strategy. That includes ensuring they are well-promoted, well-resourced and available in all the places of greatest need.

I am pleased that my constituency will benefit from a banking hub, but we need to go further. The criteria need to change, and we must ensure this is based not just on access to cash but, importantly, on the services that banking hubs provide to a community.