The Government believes that all customers, wherever they live, should have appropriate access to banking and cash services, and is monitoring this issue closely.<\/p>
Though the closure of bank or building society branches are commercial decisions, it is imperative that firms recognise the needs of all their customers, including those who need to use in-person services.<\/p>
Guidance from the FCA sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. The FCA\u2019s guidance is clear that firms are expected to carefully consider the impact of planned branch closures on their customers\u2019 everyday banking and cash access needs, and put in place alternatives, where this is reasonable.<\/p>
UK customers can access banking services through a number of different channels. This includes in branches, Post Offices or Banking Hubs, as well as via telephone banking and through digital means such as mobile or online banking.<\/p>
The Post Office allows personal and business customers to carry out everyday banking services at 11,500 Post Office branches across the UK. Banking Hubs are an initiative which enable customers of participating banks to access cash and banking services in shared facilities. Over 100 Banking Hubs have been announced so far, and the Government hopes to see these Hubs open as soon as possible.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4639", "label" : {"_value" : "Biography information for Bim Afolami"} } , "answeringMemberConstituency" : {"_value" : "Hitchin and Harpenden"} , "answeringMemberPrinted" : {"_value" : "Bim Afolami"} , "dateOfAnswer" : {"_value" : "2024-02-28", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2024-02-28T11:26:11.167Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2024-02-22", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Bank Services"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what steps he has taken to work with stakeholders to help ensure that people in (a) England and (b) Romford constituency can access physical banking facilities in their local area.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/1447", "label" : {"_value" : "Biography information for Andrew Rosindell"} } , "tablingMemberConstituency" : {"_value" : "Romford"} , "tablingMemberPrinted" : [{"_value" : "Andrew Rosindell"} ], "uin" : "15238"} , {"_about" : "http://data.parliament.uk/resources/1674091", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1674091/answer", "answerText" : {"_value" : "
Decisions on opening and closing branches are taken by the management team of each bank on a commercial basis.<\/p>
<\/p>
Nonetheless, the Government believes that the impact of branch closures should be mitigated where possible so that all customers, wherever they live, continue to have access to appropriate banking services.<\/p>
<\/p>
The Government supports industry working together to provide alternative banking and cash services, such as Banking Hubs. To date, industry has committed to delivering new shared Banking Hubs in over 90 communities. Further 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 99% of personal banking and 95% of business customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches across the UK.<\/p>
<\/p>
Guidance from the Financial Conduct Authority also sets out its expectation of firms when they are deciding to close their branches. Firms are expected to carefully consider the impact of a planned closure on their customers\u2019 everyday banking and cash access needs, particularly for customers in vulnerable circumstances, and consider possible alternative access arrangements. This seeks to ensure the implementation of closure decisions is done in a way that treats customers fairly. The Consumer Duty also requires that firms deliver \u201cgood outcomes\u201d for customers.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4639", "label" : {"_value" : "Biography information for Bim Afolami"} } , "answeringMemberConstituency" : {"_value" : "Hitchin and Harpenden"} , "answeringMemberPrinted" : {"_value" : "Bim Afolami"} , "dateOfAnswer" : {"_value" : "2023-12-06", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "4520"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2023-12-06T09:06:58.09Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2023-11-29", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Bank Services"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what discussions he has had with relevant stakeholders on (a) the role of face-to-face banking services and (b) steps being taken to ensure that such services remain available.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4651", "label" : {"_value" : "Biography information for Dan Carden"} } , "tablingMemberConstituency" : {"_value" : "Liverpool, Walton"} , "tablingMemberPrinted" : [{"_value" : "Dan Carden"} ], "uin" : "4519"} , {"_about" : "http://data.parliament.uk/resources/1670124", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1670124/answer", "answerText" : {"_value" : "
The government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups.<\/p>
<\/p>
The government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.<\/p>
<\/p>
In the context of this legislation, the financial services sector is working together to develop and provide shared services, such as Banking Hubs. While Banking Hubs are a commercial initiative, the government encourages a swift rollout of these services. Cash Access UK, which delivers these services on behalf of participating retail banks, expects to deliver Banking Hub services in 30 communities by the end of the year, and open at least a further 60 Hubs in 2024.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4580", "label" : {"_value" : "Biography information for Baroness Vere of Norbiton"} } , "answeringMemberPrinted" : {"_value" : "Baroness Vere of Norbiton"} , "dateOfAnswer" : {"_value" : "2023-11-27", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2023-11-27T12:16:08.67Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2023-11-14", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Bank Services"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask His Majesty's Government what steps they are taking, if any, to encourage high street banks to work together to establish banking hubs to protect access to cash.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4967", "label" : {"_value" : "Biography information for Baroness O'Neill of Bexley"} } , "tablingMemberPrinted" : [{"_value" : "Baroness O'Neill of Bexley"} ], "uin" : "HL304"} , {"_about" : "http://data.parliament.uk/resources/1659462", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1659462/answer", "answerText" : {"_value" : "
The Financial Conduct Authority estimates that 1.1 million of UK adults (2.1%) were \u2018unbanked\u2019 in May 2022 \u2013 down from 1.3 million UK adults (2.5%) in 2017.<\/p>
<\/p>
The government is committed to improving access to financial services and recognises that access to a transactional bank account is key to enabling people to manage their money on a day-to-day basis effectively, securely and confidently. That is why the Payment Account Regulations 2015 require the largest UK banking providers to provide fee-free Basic Bank Accounts to anyone who doesn\u2019t already have a current account. As of 30 June 2022 there were 7,361,707 basic bank accounts open in the UK.<\/p>
<\/p>
In addition, the Chancellor has written to the FCA to request an urgent review into the matter of \u2018de-banking\u2019 more broadly. The FCA have agreed to undertake this review, and to share the evidence and findings with the Treasury. This will help inform whether further action is necessary to ensure nobody is being unfairly denied banking facilities.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4874", "label" : {"_value" : "Biography information for Andrew Griffith"} } , "answeringMemberConstituency" : {"_value" : "Arundel and South Downs"} , "answeringMemberPrinted" : {"_value" : "Andrew Griffith"} , "dateOfAnswer" : {"_value" : "2023-09-18", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2023-09-18T15:46:05.417Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2023-09-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Bank Services"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, whether he has made an estimate of the number of people who do not have access to a bank account.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/350", "label" : {"_value" : "Biography information for Sir John Hayes"} } , "tablingMemberConstituency" : {"_value" : "South Holland and The Deepings"} , "tablingMemberPrinted" : [{"_value" : "Sir John Hayes"} ], "uin" : "198596"} , {"_about" : "http://data.parliament.uk/resources/1658558", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1658558/answer", "answerText" : {"_value" : "
Treasury Ministers and officials regularly meet with the Financial Conduct Authority (FCA) to discuss a variety of policy matters<\/p>
<\/p>
The government believes that all customers, wherever they live, should have appropriate access to banking and cash services.<\/p>
<\/p>
Decisions on opening and closing branches are a commercial issue. However, the FCA\u2019s guidance sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. Firms are expected to carefully consider the impact of planned branch closures on the everyday banking and cash access needs of their customers and consider possible alternative access arrangements. This ensures that the implementation of closure decisions is undertaken in a way that treats customers fairly.<\/p>
<\/p>
Alternative options for access to banking can be via telephone banking, through digital means such as mobile or online banking, and the Post Office. The Post Office Banking Framework allows 99% of personal banking and 95% of business banking customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK.<\/p>
<\/p>
New shared Banking Hubs are also being introduced, providing cash and basic banking services and dedicated space where community bankers from major banks can meet customers of that bank. Decisions regarding the operation and location of Banking Hubs are taken by the parties involved. Following successful pilots Cash Access UK Ltd is rolling out shared Banking Hubs and other new shared facilities in communities across the UK. To date, industry has committed to deliver Banking Hubs in 80 locations. Further information on Banking Hubs is available at: https://www.cashaccess.co.uk/<\/a><\/p> <\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4874", "label" : {"_value" : "Biography information for Andrew Griffith"}
}
, "answeringMemberConstituency" : {"_value" : "Arundel and South Downs"}
, "answeringMemberPrinted" : {"_value" : "Andrew Griffith"}
, "dateOfAnswer" : {"_value" : "2023-09-12", "_datatype" : "dateTime"}
, "groupedQuestionUIN" : {"_value" : "198105"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2023-09-12T10:33:20.343Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2023-09-06", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Bank Services"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, what discussions he has had with the Financial Conduct Authority on steps to help ensure local communities have access to essential in-person banking services.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4518", "label" : {"_value" : "Biography information for Tulip Siddiq"}
}
, "tablingMemberConstituency" : {"_value" : "Hampstead and Kilburn"}
, "tablingMemberPrinted" : [{"_value" : "Tulip Siddiq"}
], "uin" : "198106"}
, {"_about" : "http://data.parliament.uk/resources/1651071", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1651071/answer", "answerText" : {"_value" : " The Government consulted specifically on the issue of contract termination and freedom of expression for payment service providers as part of its review of the relevant regulations \u2013 the Payment Services Regulations 2017 \u2013 and is currently reviewing responses to determine if legislative change is needed.<\/p> <\/p> The Government is committed to bringing a Written Ministerial Statement before the House to report on the Government\u2019s findings on this matter, and to set out if any changes to regulation are necessary, ahead of its formal response to the Review.<\/p> <\/p> Concerning closures relating to Political Exposed Persons (PEPs) specifically, the Financial Services and Markets Act 2023 commits the FCA to carry out a review into financial institutions\u2019 adherence to the FCA\u2019s guidance on PEPs. This guidance is clear that financial institutions should not decline or close a business relationship with an individual solely on the basis that they are a PEP.<\/p> <\/p> I have written to the FCA to set out the Government\u2019s expectations for this review and have made clear that the FCA must assess the extent to which firms are taking a blanket approach and refusing all PEP customers.<\/p> <\/p> I have also additionally written to underline the importance of the FCA\u2019s review and set out the Government\u2019s expectation that the FCA will prioritise this review over the coming months.<\/p> <\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"}
}
, "answeringMemberPrinted" : {"_value" : "Baroness Penn"}
, "dateOfAnswer" : {"_value" : "2023-07-18", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2023-07-18T11:09:24.453Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2023-07-06", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Bank Services"}
, "houseId" : {"_value" : "2"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"}
}
], "questionText" : "To ask His Majesty's Government what steps they are taking to prevent banks from closing, or refusing to open, accounts for any reason other than unlawful activity.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4970", "label" : {"_value" : "Biography information for Lord Weir of Ballyholme"}
}
, "tablingMemberPrinted" : [{"_value" : "Lord Weir of Ballyholme"}
], "uin" : "HL9163"}
, {"_about" : "http://data.parliament.uk/resources/1649606", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1649606/answer", "answerText" : {"_value" : " The Government recognises the importance of transparency with regards to consumers and businesses\u2019 access to financial services products. The Government has recently consulted on the adequacy of the existing balance of rights and obligations between payment service users and providers in relation to users\u2019 contracts and rules on termination, as part of its review of the relevant regulations \u2013 the Payment Services Regulations 2017. The Government is currently reviewing responses to determine if the legislative change is warranted, and will engage the Financial Conduct Authority as the competent authority where appropriate, on the basis of these findings. The Government is committed to bringing a Written Ministerial Statement before the House to report on the Government\u2019s findings on this matter, and to set out if any changes to regulation are necessary, ahead of its formal response to the Review.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4874", "label" : {"_value" : "Biography information for Andrew Griffith"}
}
, "answeringMemberConstituency" : {"_value" : "Arundel and South Downs"}
, "answeringMemberPrinted" : {"_value" : "Andrew Griffith"}
, "dateOfAnswer" : {"_value" : "2023-07-06", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2023-07-06T15:01:05.573Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2023-07-03", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Bank Services"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, if he will hold discussions with the Financial Conduct Authority on levels of transparency in financial institutions over decisions to close (a) personal and (b) business accounts.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/1409", "label" : {"_value" : "Biography information for Mr Gregory Campbell"}
}
, "tablingMemberConstituency" : {"_value" : "East Londonderry"}
, "tablingMemberPrinted" : [{"_value" : "Mr Gregory Campbell"}
], "uin" : "192020"}
, {"_about" : "http://data.parliament.uk/resources/1612828", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1612828/answer", "answerText" : {"_value" : " The way consumers and businesses interact with their banks and make payments is changing, bringing significant benefits to those who choose to opt for the convenience, security, and speed of digital services.<\/p> <\/p> Nonetheless, the government recognises that cash continues to be used by millions of people across the UK, and is currently legislating to protect access to cash as part of the Financial Services and Markets Bill. The Bill will establish the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provide it with appropriate powers to seek to ensure reasonable provision of withdrawal and deposit facilities.<\/p> <\/p> Based on data published by LINK for February 2023, there are 31,873 free-to-use ATMs in England, including 3,431 in the West Midlands and 72<\/p>