Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the implications for (1) consumer protection, and (2) financial stability, of emerging customer-facing trials of agentic AI systems in the UK banking sector.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.
The treatment of customers by UK banks and building societies is governed by the Financial Conduct Authority (FCA), whose independent regulatory powers ensure consumer protection in the financial services sector. The FCA’s Principles for Businesses require firms to provide prompt, efficient, and fair service to all their customers. The FCA’s Consumer Duty requires firms to act in good faith, prevent foreseeable harm, and act in the best interests of consumers.
UK banks are required to comply with relevant laws and regulations that are fundamental to consumer protection, including in any use of customer-facing agentic AI. In April 2024, the FCA published an update on its regulatory approach to AI, making it clear that where firms use AI as part of their business operations, they remain responsible for meeting FCA rules. Firms remain fully accountable for outcomes delivered by AI systems.
The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and monitoring risks to UK financial stability. In their April 2025 Financial Stability in Focus publication, they set out the potential benefits and risks to financial stability that could result from AI use in the financial system, including in relation to agentic AI. HM Treasury continues to work closely with the FPC and UK financial regulators to assess risks to financial stability.
The Government will continue to work with regulators and industry to ensure innovation proceeds safely and responsibly.
Asked by: Lewis Cocking (Conservative - Broxbourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to support (a) older people and (b) people who are not digitally confident in accessing online banking services.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government understands the importance of face-to-face banking to communities and high streets across the UK, 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 230 hubs have been announced so far, and over 180 are already open.
Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.
The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
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.
Asked by: Lewis Cocking (Conservative - Broxbourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with LINK on the potential for widening the criteria for establishing additional banking hubs across the UK.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government understands the importance of face-to-face banking to communities and high streets across the UK, 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 230 hubs have been announced so far, and over 180 are already open.
Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.
The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
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.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that face-to-face banking services remain accessible to (a) older people and (b) those who lack digital confidence.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government understands the importance of face-to-face banking to communities and high streets across the UK, 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 230 hubs have been announced so far, and over 180 are already open.
Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.
The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
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.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to assist (a) older people and (b) people who are not digitally confident in accessing online banking services.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government understands the importance of face-to-face banking to communities and high streets across the UK, 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 230 hubs have been announced so far, and over 180 are already open.
Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.
The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
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.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with LINK on the potential for widening the criteria for establishing additional banking hubs across the UK.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government understands the importance of face-to-face banking to communities and high streets across the UK, 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 230 hubs have been announced so far, and over 180 are already open.
Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.
The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
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.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps are being taken to support small businesses changing finance providers.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government is committed to ensuring the UK has a highly competitive and diverse banking sector, working in the interests of all consumers and businesses across the country. It is important that businesses shop around for their banking needs as this drives competition, improves choice and helps keep prices fair. There are a number of policies that help facilitate this:
Small businesses with fewer than 50 employees and an annual turnover of less than £6.5m are already able to use the current account switch service – designed to make it easier to shop around for their business current account.
The Commercial Credit Data Sharing scheme requires the UK’s largest banks to share credit information on small and medium sized enterprises (SMEs) with other lenders through designated Credit Reference Agencies. This has helped lower the barriers to entry for new finance providers and improved credit scoring in the SME finance market, giving small businesses more choice when applying for finance. The Government will consult on enhancing the scheme later this year to ensure it continues to keep pace with market changes.
The Government has also committed to consult on improving the Bank Referral Scheme. The scheme requires designated banks to refer SME business customers that they reject for finance, to platforms that can match the SME with alternative finance providers.
The British Business Bank’s Finance Hub also provides independent and impartial information on different finance options for scale-up, high growth, and potential high growth businesses, as well as resources that support SMEs to innovate and become more sustainable
Finally, in December 2024 the Secretary of State for Business and Trade also announced a new Business Growth Service (BGS) which will make it easier and quicker for businesses across the UK to get the help, support and advice they need to grow and thrive.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that partially sighted people in rural areas have access to face to face banking services.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
Banking has changed significantly in recent years with many customers benefitting from the ease and convenience of digital banking. The Government understands the importance of face-to-face banking to communities and high streets across the UK, 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 160 are already open.
Where a branch closure is announced or a community has submitted a cash access assessment request, LINK, the independent industry coordinating body responsible for making access to cash assessments, assesses a community’s access to cash needs, and will recommend appropriate solutions where it considers that a community requires additional cash services, such as a banking hub or deposit service.
The Financial Conduct Authority (FCA) rules require designated firms to consider a range of factors in their assessments which will account for challenges in cash access faced in rural areas. For example, firms are required to consider the actual travel times and costs to reach cash access facilities and identify gaps in provision where these are unreasonable, which may be particularly the case in rural areas.
Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.
The Government works closely with the FCA, the independent regulator of the UK’s financial services sector, to ensure that all customers get the right support with their financial products and services.
The FCA requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers, including the elderly and disabled customers.
Furthermore, under the Equality Act 2010, banks must make reasonable adjustments to ensure their services are accessible to all.
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.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will meet with private sector cash machine operator Link to discuss additional face to face banking services for rural areas.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
Banking has changed significantly in recent years with many customers benefitting from the ease and convenience of digital banking. The Government understands the importance of face-to-face banking to communities and high streets across the UK, 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 160 are already open.
Where a branch closure is announced or a community has submitted a cash access assessment request, LINK, the independent industry coordinating body responsible for making access to cash assessments, assesses a community’s access to cash needs, and will recommend appropriate solutions where it considers that a community requires additional cash services, such as a banking hub or deposit service.
The Financial Conduct Authority (FCA) rules require designated firms to consider a range of factors in their assessments which will account for challenges in cash access faced in rural areas. For example, firms are required to consider the actual travel times and costs to reach cash access facilities and identify gaps in provision where these are unreasonable, which may be particularly the case in rural areas.
Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.
The Government works closely with the FCA, the independent regulator of the UK’s financial services sector, to ensure that all customers get the right support with their financial products and services.
The FCA requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers, including the elderly and disabled customers.
Furthermore, under the Equality Act 2010, banks must make reasonable adjustments to ensure their services are accessible to all.
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.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 14 March 2025 to Question 36179 on Bank Services: Visual Impairment, what assessment she has made of the effectiveness of the FCA’s regulatory rules for access to cash introduced in September 2024 at maintaining equitable cash access in (a) urban and (b) rural areas.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
Banking has changed significantly in recent years with many customers benefitting from the ease and convenience of remote banking. The Government understands the importance of face-to-face banking to communities and high streets across the UK, and is committed to championing sufficient access for all as a priority.
The Government also recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.
The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Under its rules, the UK’s largest banks and building societies are required to assess the impact of a closure or material alteration of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.
The FCA is required by law to keep its access to cash rules under review and is monitoring the impact of these rules on an ongoing basis to ensure they deliver the right outcomes for businesses and consumers.
The FCA also 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.
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.
Furthermore, the Government is working closely with industry to roll out 350 banking hubs across the UK. Banking hubs offer everyday counter services provided by Post Office staff, allowing people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services. 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 160 are already open.