Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to reduce the incidence of debanking without good reason by financial institutions.

Banking services fulfil a vital role for millions of people and businesses across the UK, and the Government is committed to ensuring high standards of consumer protection and financial inclusion across the financial services sector.

Earlier this year, the Government legislated to enhance protections for customers in cases where their bank account is terminated by their provider. Under these new rules coming into force for relevant new contracts from April 2026, Banks and other payment service providers will be required to give customers at least 90 days’ notice before closing their account or terminating a payment service and provide a clear and specific explanation so the customer can understand why it is being terminated.

These changes will ensure more transparent and predictable access to banking, giving customers the time and information they need to challenge decisions or find alternative arrangements.