Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to help ensure that people have access to banking services.

This question was answered on 14th December 2021
The way consumers and businesses interact with their banking continues to change, bringing significant benefits to those who choose to opt for the convenience, security, and speed of digital payments and banking. However, the Government also recognises that physical access to banking continues to play an important role in many people’s lives.

Decisions on opening and closing branches are a commercial issue for banks and building societies and the Government does not intervene in these decisions. However, the Government firmly believes that the impact of branch closures should be understood, considered and mitigated where possible so that all customers and businesses continue to have access to banking services.

In May 2017, the largest banks and building societies signed up to the Access to Banking Standard which commits them to ensure customers are well informed about branch closures, the bank’s reasons for closure and options for continued access to banking services. Guidance from the Financial Conduct Authority also ensures firms carefully consider the impact of branch closures on customers’ needs and consider possible alternative access arrangements.

Alternative options for access can be via telephone banking, through digital means, such as mobile or online banking, or via the Post Office. The Post Office Banking Framework allows 99% of personal banking customers and 95% of business to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK.