Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the closure of high street bank branches on consumers, particularly older people.

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.

Where a branch closure is announced, LINK (the operator of the UK’s largest ATM network) assesses a community’s access to cash withdrawal and deposit facilities on behalf of the UK’s largest high street banks. LINK takes into consideration a wide range of criteria, such as the size and vulnerability of the population, existing and remaining cash access facilities, the number of shops and how many older people live nearby. Following this independent assessment, LINK will decide whether to recommend any additional services, such as a banking hub.

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 220 hubs have been announced so far, and over 135 are already open.

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.