Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the impact of the (a) closure of local banks and (b) opening of banking hubs on people who are elderly or disabled.

Banking has changed significantly in recent years with many customers benefiting from the ease and convenience of remote banking. While branch closures are commercial decisions for banks, the Financial Conduct Authority (FCA) guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers fairly.

The FCA requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers, such as the elderly and disabled. Additionally, under the Equality Act 2010, banks must make reasonable adjustments to ensure their services are accessible to all.

The Government understands the importance of face-to-face banking to communities and high streets and is committed to championing sufficient access for all as a priority. 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 FCA introduced regulatory rules for access to cash in September 2024. Its rules require the reasonable provision of free cash withdrawal and deposit facilities for personal current accounts.

Where a branch closure is announced or a community has submitted a cash access assessment request, LINK (the operator of the UK’s largest ATM network) assesses a community’s access to cash withdrawal and deposit needs, and can recommend a new service if necessary.

Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. Further information about submitting a cash access request can be found on LINK’s website.

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.