Access to Banking Hubs: Hertfordshire

Gagan Mohindra Excerpts

Wednesday 25th June 2025 Westminster Hall

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

I beg to move,

That this House has considered access to banking hubs in Hertfordshire.

It is a pleasure to serve under your chairship, Sir Desmond. I thank Clementine Manning from my office for the extensive work she has put into researching for this speech and many of my other contributions to the House. I urge colleagues to be gentle with me; this is my first Westminster Hall debate, and I have yet to learn how to do these things properly. I am grateful that the hon. Member for Strangford (Jim Shannon) is here to show me the way, with hopefully an intervention in due course.

Access to banking services is essential for everyone across the country, and more and more our rural and semi-rural areas are seeing their access to banking services reduced. That is a particular issue for those who are unable to use technology to access online banking, and I know that many who are able to use online banking still feel more reassured if they are able to carry out banking activities face-to-face. Having seen the immensely positive impact that increased access to banking services through the post office has had in Rickmansworth in my constituency of South West Hertfordshire, I am campaigning for the establishment of a banking hub in Abbots Langley, another area in my constituency, to ensure that as many of my constituents as possible are able to access these essential services. I appreciate that everyone else here wants the same.

Hertfordshire in particular has felt the impact of the withdrawal of banking services, as, despite there being over 160 banking hubs now opened, just four are in Hertfordshire, with none in my constituency. Rural areas are twice as likely to depend on their local post office for cash and banking services, and it is essential that people in those areas are not left behind. Post offices have always been, and remain, critical assets to our communities, providing essential services. I have had the pleasure of meeting local postmasters in Abbots Langley and Rickmansworth, as well as visiting a Royal Mail distribution centre, to learn more about the sheer volume of service provided by their hard workers. From speaking to those postmasters, the essential role that they play in supporting our communities in all ways is clear. With many people unable to use technology, or simply more comfortable with face-to-face provision, the provision of banking hubs is just one of those essential services.

In the UK as a whole, 99% of the population live within three miles of a post office branch, as do 97.9% of the UK’s rural population. Post offices also make up more than 66% of all branch-based cash access points in the UK. That is particularly relevant because of the decline in the number of bank branches. This is not just an issue in Hertfordshire or my constituency; across the UK, we have seen 6,200 bank or building society branch closures since 2015. In my constituency of South West Hertfordshire, 89% of banks have closed since 2015, leaving us with only a Nationwide in Rickmansworth.

[Sir John Hayes (South Holland and The Deepings) (Con)]

My hon. Friend is right that this is a problem felt across Britain, as banks abandon their customers and close branches in my constituency in Crowland, the Deepings, Holbeach, Long Sutton and Sutton Bridge. The key thing about this issue is that it affects those least able to bank online; it also affects all of us who believe that banking should be an experience where people meet other people and personal service counts. I thank my hon. Friend for this debate. I call on the Minister to have more banking hubs, as the Payment Choice Alliance has requested—I hope she will say that when she sums up.

[Mr Mohindra]

My right hon. Friend has obviously had early sight of my speech, because I was going to get on to exactly that about human interaction, but I will let colleagues hold off for a few minutes while I carry on the main body of my speech. As my right hon. Friend said, the situation is deeply desperate, but sadly, not unique to South West Herts. I know other Members in this House will be feeling similar circumstances, as one in seven constituencies across the UK have only one bank or no bank at all.

Access to cash is essential, and it is important that we retain the ability to withdraw and deposit cash to support that, particularly as that allows those who do not use online banking to keep an eye on their personal finances. The post office supports this vital service and is essential for people in my area. On average, £1.6 million is withdrawn from post offices in my constituency every month, while £3.5 million is deposited. Although the post office provides an amazing service, a banking hub in a post office gives people proper support. We must prevent the closure of post offices, many of which are now run by a single person and are not necessarily profitable. It would be a great damage to all our areas if post offices were to close too.

Although post offices such as the one in Rickmansworth have stepped up to provide greater banking services than those normally available, we cannot expect our constituents to rely on post offices to replace the banks if there is no banking hub in place, as they do not provide the same level of service. Although Rickmansworth is fortunate to have some banking services available via the post office, as well as in the Nationwide branch, since I was elected in 2019 South West Hertfordshire has lost NatWest, Barclays and Santander in Rickmansworth.

[Matt Rodda (Reading Central) (Lab)]

The hon. Gentleman is making an excellent point about the need for in-person banking services. In my constituency, we have experienced exactly what he has described in the south-east of England. My experience is that many who are vulnerable, or overwhelmed by getting into the town centre or have mobility problems are particularly affected, and so are many small businesses that deal in cash. Would the hon. Gentleman like to comment further on the need for those groups to be better served?

[Mr Mohindra]

Once again, an hon. Member has pre-empted part of my speech. As the hon. Gentleman alludes to, the issue is not specific to the south-east, but occurs across the country. I look forward to reassurance from the Minister in her speech.

The situation is worse in other parts of my constituency. Many of my residents do not have access to any banking services on their high street. That is particularly the case in Abbots Langley where, in 2021, the Barclays branch closed, leaving residents in the town and surrounding area with no access to banking services. The issue matters greatly to people in my constituency. I joined forces with our local Conservative councillors, Vicky Edwards and Ian Campbell, to support a campaign to bring a banking hub to the post office on the high street. I met with the local postmaster and Vicky and Ian recently to discuss the value that would bring to constituents.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

My hon. Friend is making an excellent speech. I have had similar challenges in my constituency in the Scottish Borders. Like him, I have been campaigning for banking hubs—in Selkirk and Eyemouth. Indeed, I presented a petition in the House of Commons a few weeks ago. The banking hub we have in Jedburgh is working very well, but part of the problem for getting new banking hubs is the criteria that Link uses to determine whether a community is suitable. Does my hon. Friend share my concerns, and will he put further pressure on the Minister to persuade Link to extend the criteria, so that more communities can get the benefit of banking hubs?

[Mr Mohindra]

My hon. Friend is a doughty champion for his constituents. Part of my remarks today, and I am sure of others’ later in the debate, concerns that exact point about increasing flexibility. We must not create criteria for banking hubs that do not necessarily solve the problem; we are trying to solve access to cash and banking services for all our constituents, irrespective of where they live.

More than 1,300 residents have already signed a petition in support of our campaign in Abbots Langley for a banking hub. I continue to push hard for that to be achieved, as that area in my community would greatly benefit from a banking hub as an obvious solution to the current lack of access those residents have.

Returning to the importance of access to cash, it is essential that the key service provided by banks continues to be available to people. I appreciate that we are moving increasingly towards a cashless society. It is rare now to find a shop that does not accept card payments, or indeed accepts cash at all. The idea of carrying emergency cash may, for many of us, seem less common. As someone with a background in small business, I understand the importance of cash for small and medium-sized businesses. Although ATMs make cash available to the wider population, it is not the same as the face-to-face interaction that a banking hub provides. I am glad that the major banks have recently signed a five-year access to cash deal with the Post Office to allow free withdrawals and deposit of cash, but that is a small step compared with the need for the services that banking hubs provide.

Of small businesses, 28% use cash at least weekly, and with more than 5,500 small businesses in South West Hertfordshire, banking facilities are not a service they can go without. Ahead of the debate, I thought it was important to speak to local businesses in my area. I contacted businesses across Abbots Langley, Rickmansworth and Kings Langley for their views on banking services and the role that cash plays in their everyday business. Many of the businesses I engaged with supported banking hubs, because they regularly need to deposit cash. Business owners in Abbots Langley told me that because they have no access to banking services, they often have to travel long distances to Watford to deposit large amounts of cash, which is time-consuming and potentially unsafe. That would be solved if Abbots Langley had a banking hub.

Small business owners are not the only group affected by the digital exclusion that comes with the loss of high street banks. Nearly a third of people over the age of 65 across the UK say that they feel uncomfortable using online banking, particularly for large or delicate transactions. Some 19% of people in my constituency are over 65. Having a banking hub allows the elderly and vulnerable to feel more comfortable, because they can access and deal with their finances in person. It is great that people often feel that they can trust their postmaster. Again, this may be some of the only social interaction that many people have, and it benefits their mental health and wellbeing.

It is not just the elderly who are affected by the move towards a cashless society. I have long advocated ensuring that the infrastructure in South West Hertfordshire, including essential services such as banking, is accessible for everyone. Those with a disability or impairment are also being impacted by the move away from high street banks. In a recent survey of a group of 2,700 people who had a disability or impairment, more than half said they had been negatively impacted by bank closures. They struggle with security features, authentication checks and speaking to their bank over the phone. They are simply left with no other alternative, and should not be forced to travel to other towns, often on unreliable, infrequent public transport, simply to access their money.

More than 1 million people in the UK rely wholly on cash, and 8 million adults report that they would struggle in a completely cashless society. For the elderly and the vulnerable, the opening of local banking hubs reduces the risk of their becoming victims of financial abuse and allows them to remain independent. As I have said, post offices and the postmasters who run them are often more than just a post service. They see their regulars frequently, and will notice if someone has not been seen or does not look well. They are not healthcare professionals, but they are another set of eyes and ears that can tell how customers are doing.

The process of opening a banking hub is currently undertaken by Cash Access UK, Link and supporting banks, and I look forward to meeting with Link shortly to begin discussions about getting a banking hub in Abbots Langley. I previously discussed the process with other colleagues, including my hon. Friend the Member for Broxbourne (Lewis Cocking), who expressed concerns about the parameters that are used to determine whether an area qualifies for a banking hub.

[Matt Rodda]

The hon. Gentleman is making an excellent point about this issue. My experience is that the criteria appear to be drawn too tightly, and that there is perhaps a lack of appreciation of the scale of need in some areas. In my own area, although there is frequent public transport from the Reading suburb of Caversham to the town centre, Caversham falls 1 minute outside the minimum criterion for travel time, yet it has thousands and thousands of residents, as well as a significant older and disabled population. Surely it would be wise for Link to consider the broader context, not just travel time.

--- Later in debate ---

[Mr Mohindra]

The hon. Gentleman makes an excellent point, which I think will be echoed in later contributions. The criteria feel too stringent. With the Minister’s support, I hope that conversations with Link and others will mean that the criteria are a bit more flexible, so that banking hubs are accessible to all, rather than just fitting an arbitrary parameter.

I have already expressed my concerns about the parameters used to determine whether an area qualifies for a banking hub, and I will emphasise in my meeting the importance of ensuring that the proximity of Abbots Langley to Watford should not prevent it from getting a banking hub, for the reasons that I have already outlined.

The problem with semi-rural areas such as mine—and Reading, by the sound of it—is that the criteria established by Link for determining the need to set up a new banking hub are likely to miss areas such as Abbots Langley, because they focus on when the last bank branch in a town closed. Abbots Langley is a village that has not had a bank for a very long time. I will raise this with Link in my meeting, especially because villages and smaller communities have been disproportionately affected by bank closures, losing 70% of their banking network since 2015 compared with less than 50% in urban areas.

[Robbie Moore (Keighley and Ilkley) (Con)]

After a long campaign, we have finally been successful in securing a banking hub in Ilkley, despite having to wait for the last bank to announce its closure. However, securing access to cash is not just about securing a banking hub; it is about securing an ATM that people can access when the hub is closed. We found that, unfortunately, Cash Access UK and Link, which decide applications for hubs, have determined that we should not need an ATM on the outside of the building. Does my hon. Friend agree with me about the importance of such an out-of-hours facility?

[Mr Mohindra]

My hon. Friend is a passionate advocate for his community, and his point about access to cash outside of office hours is really important. One of my community’s frustrations is that while they may have access to an ATM, the money runs out very quickly on, say, a Saturday morning, so if someone needed cash on a Sunday, they would have to travel further, because that cash machine would not be restocked until the following Monday. I agree with my hon. Friend and hope the Minister will take on board his point that it is about not just having a banking hub, but making sure that ATMs are available and stocked with cash at all times.

Link has deviated from its standard framework for approving banking hubs in around 32 locations so far, and I hope that that could be the case in my area. I am sure that the hon. Member for Reading Central (Matt Rodda), my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) and others will encourage it to consider the exceptional circumstances in their own areas. The alternative to the establishment of a banking hub is for Abbots Langley post office to get enhanced banking services, such as a deposit service, similar to the one that was set up in Rickmansworth following the closures there.

The Government should be doing more to ensure that all UK residents have access to adequate banking facilities. I will continue to work with local post offices, banks such as NatWest and Barclays, and Link to bring more banking hubs to my constituency, and I know that others in the Chamber are doing the same. We cannot allow our high streets and residents to be without access to financial services, and I hope to see the Government do more to support this endeavour.

[Several hon. Members rose—]

--- Later in debate ---

[Emma Reynolds]

I am grateful for the correction. I would not like to get in trouble with the hon. Members that represent different parts of Hertfordshire, not least our Parliamentary Private Secretary, my hon. Friend the Member for Hitchin (Alistair Strathern), who also represents a constituency there. I have better knowledge of Buckinghamshire, which is nearby, but I thank her for that correction to the record. I do not want to get in trouble with the hon. Lady’s colleague, the hon. Member for Harpenden and Berkhamsted (Victoria Collins), who was very active in our previous debate on this issue.

I thank the shadow Minister, the hon. Member for Wyre Forest (Mark Garnier), for his speech. I will come back to the points that he made in a moment. I also thank, for their interventions, my hon. Friends the Members for Hexham (Joe Morris) and for Reading Central (Matt Rodda), the right hon. Member for South Holland and The Deepings (Sir John Hayes), and the hon. Members for Keighley and Ilkley (Robbie Moore) and for Berwickshire, Roxburgh and Selkirk (John Lamont). I have met some of them separately to this debate.

I thank again the hon. Member for South West Hertfordshire—I was going to call him my hon. Friend; the debate feels very friendly. I have looked in detail at his constituency, thanks to his calling this debate, which is always a benefit of having such Westminster Hall debates, as he will attest to. I have had a look at Abbots Langley and Rickmansworth. I often go through his constituency on the way home, particularly the Rickmansworth area. They are very different parts of the constituency, from what I can see, in terms of the scale of the population and the number of shops in those areas. In Abbots Langley, I am told—he can correct me if this is not true—that there has been no community access request, as of our information. So if he does want to campaign for a banking hub there, it is open to him and his colleagues on the council he mentioned to request such a thing. Equally, I know he has an enhanced post office in Rickmansworth. Again, it is open to him or others in the community to make the application so that Link would assess the criteria.

[Mr Mohindra]

I thank the Minister for her summing up. In terms of Abbots Langley, she is correct that the post office has not yet put in an application. It was first establishing the criteria and trying to learn lessons from others. The postmaster is now in a position to actively pursue that, and part of my local campaign is to support that. I hope the Minister will give her blessing and potentially a letter of support, if that is within reason, to ensure that Link and others think that is practical. In terms of the Rickmansworth one, she is correct. It is an enhanced banking hub rather than a full banking hub, as the debate suggests.

--- Later in debate ---

[Mr Mohindra]

I thank the Economic Secretary to the Treasury for that response. She will have heard the sentiment around the Chamber that all of us want to see more banking hubs throughout the country. Although the target of 350 may once have been ambitious, that does not mean we should not have more, especially if we already have 230 in place. I thank hon. and right hon. Members for their contributions and for making my first Westminster Hall debate so enjoyable.

Question put and agreed to.

Resolved,

That this House has considered access to banking hubs in Hertfordshire.