Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to require Banking Hubs to accept and process cheque deposits as part of the provision of basic banking services.

Banking is changing, with many customers benefiting from the convenience and flexibility of managing their finances remotely. However, the Government understands the importance of face-to-face banking services to communities and is committed to supporting sufficient access for customers across the country.

In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 200 are already open.

Banking hubs provide access to everyday counter services through Post Office staff, including cash withdrawals and deposits, balance enquiries and bill payments. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out other banking services.

The range of services available through Post Office counters in banking hubs, including whether cheque deposits are accepted and processed, is determined by the commercial arrangements between individual banks and the Post Office. A significant number of retail banks continue to offer cheque depositing services through Post Office counters.

Where cheque depositing is not available at a hub counter, customers continue to have alternative options to pay in cheques, including at bank branches where available, by post, or digitally via mobile banking apps using cheque imaging technology. Banks may also provide postal options for customers who are unable to travel to a branch or for whom digital banking is not suitable.

The Government continues to engage with the banking industry to improve the consistency and functionality of services provided through banking hubs, including through recent discussions with banks, Cash Access UK and UK Finance.