Banking Services: Accessibility

Lucy Rigby Excerpts

Thursday 19th March 2026 Westminster Hall

[The Economic Secretary to the Treasury (Lucy Rigby)]

It is a pleasure to serve under your chairmanship, Mr Western. I congratulate the hon. Member for St Ives (Andrew George) on securing this debate. I thank him for setting out the concerns of his constituents very well, and I thank other hon. Members for their contributions: they have been powerful and in some cases very heartfelt.

It is fair to say that access to banking continues to attract significant interest from colleagues across the House. The hon. Member is right that that interest is increasing. He referred to his own experience of the trajectory of this issue, and I agree: I am seeing hon. Members raising this issue in the House with increased salience, which I am sure reflects how our constituents feel. I am grateful to all hon. Members who have taken the time to share their experiences and those of their constituents.

Some hon. Members who spoke in this debate have attended my banking hub surgeries, which I hope the Liberal Democrat spokesperson, the hon. Member for Brecon, Radnor and Cwm Tawe (David Chadwick), found valuable. The fact that I hold those surgeries, which Members of Parliament from any party can attend, demonstrates that the issue is being raised more and more by Members across the House.

I recognise that rural and coastal communities such as those in the constituencies of the hon. Member for St Ives and of the hon. and gallant Member for Tewkesbury (Cameron Thomas) face particular challenges in accessing banking services. I very much appreciate the fact that in many circumstances local geography and transport may make it more difficult for elderly and disabled people, as well as those who are vulnerable or digitally excluded, to reach face-to-face banking when branch provision changes locally.

The hon. Member for St Ives mentioned services in his constituency being provided in an upstairs setting. I will come on to address accessibility issues, but I was sorry to hear that example. On transport, my hon. Friend the Member for Redditch (Chris Bloore) raised concerns about travel times, which I will also address. Many points have been raised, and I will do my level best to address them all.

The Opposition spokesman, the hon. Member for North Bedfordshire (Richard Fuller), rightly referred to the fact that the banking landscape has changed in recent years. Many people have greatly benefited from digital innovations that allow them to manage their finances more easily. For many, those changes have increased accessibility and convenience. Many of us are able to access banking services just from an app on a phone. It has been clear in this debate, however, that although digital services work well for many people, others still want, need or prefer to access banking in person or use cash in their daily lives. That includes some older customers, people who are more vulnerable, or those—as with the family member of my hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray)—who have been through a significant life event. Being vulnerable at that point, they may just want to speak to another human.

This Government are on the side of each of those categories of people. We recognise that cash remains important for people and businesses right across the country. That is why we have been clear that, alongside digital innovation, it is critical that people have access to the services that they need. Hon. Members know that access to cash is protected in legislation and the FCA has responsibility and powers to ensure that people and businesses can continue to withdraw and deposit cash.

I want to address the serious concerns that have been raised by hon. Members about the impact of bank branch closures on our communities. In particular, the hon. Member for St Ives articulated his concerns about the closure of a Lloyds branch in Penzance. I fully understand his concerns about that situation. The Government understand the importance of those services, and there are other similar instances across the country. Banking services and other services must reflect customer and community interest.

I welcome the fact that some banks have made commitments to maintaining or improving their existing branches, because they recognise just how important they are to their customers. Nationwide Building Society has committed to maintaining 605 branches until at least 2030 and HSBC UK has committed to keeping 327 branches open until at least 2027; we very much welcome those important commitments. I also draw attention to the fact that, according to the Building Societies Association, 35% of the branch network is currently provided by building societies. As a Government, we fully support and value the role that mutuals play in our economy and society.

Branch access is an important feature for a number of customers. Many have used the free current account switching service to change provider. The switching service ensures that all payments and balances are automatically transferred to a new account, but for those firms that are changing their branch network, there are rules and obligations. In those circumstances, it is important that all Members know that decisions to close branches must be taken with regard to their impact on customers and communities. The FCA’s branch closure guidance is very clear that firms must carefully assess the effect of a planned closure on customers’ everyday banking and cash access needs.

Let me underline that point: it is very important, not least because of some of the contributions to today’s debate. Banks are expected to put appropriate alternatives in place. Where they fall short of those expectations, the FCA can and will ask for closures to be paused and I fully support those FCA powers. As a Government, we expect the FCA to use them where they consider it necessary to do so. Crucially, we also believe it is right that no branch can close until any recommended services are put in place.

[Andrew George]

At the end of the day, the issue is that the FCA and Link primarily undertake an assessment of access to cash, and not to the full range of banking services. The Minister says that adequate alternatives are in place. Of course, the banks will no doubt attempt to put some facade in place to satisfy that requirement—as she notes, I am unimpressed by the case in Penzance—but fundamentally, the test is access to cash, and that is insufficient. Surely that measure needs to be significantly widened.

[Lucy Rigby]

I appreciate that there is a difference between access to cash and access to banking services; I will come on to the latter, if the hon. Member will give me a moment.

The Government wholeheartedly recognise the importance of banking services to local communities; that recognition underpins our manifesto commitment to support industry to roll out 350 banking hubs across this country by the end of this Parliament. I think I am right to say that the hon. Member attended the opening of a banking hub in Helston in his constituency.

[Andrew George]

I did.

[Lucy Rigby]

It is always welcome when Members attend such openings. The hon. Member for Keighley and Ilkley (Robbie Moore) is no longer in his place, but I was pleased to hear him welcome the upcoming opening of the banking hub in Ilkley. I note what he says about the need for a hub in Keighley as well.

[David Chadwick]

Mine is the biggest constituency in England and Wales, and four or five towns in it sorely need a banking hub: Brecon and Presteigne are two such examples, beyond the hub that has already opened in Ystradgynlais. Does the Minister agree that there is a need for more than the 350 hubs that the Government have already committed to?

[Lucy Rigby]

The hon. Member has tried to trick me into saying the name of his constituency or the towns in it before; as he well knows, I cannot pronounce them anywhere near as well as he can. I was about to answer the exact point that he makes. It is really important to note that the 350 figure is a floor, not a ceiling. Our manifesto commitment sets that floor of 350 hubs. I appreciate that the hon. Member is not asking me to call it right now, but I will: the Government, working with industry, hope to go above that number. That is not least because more than 270 hubs have already been announced. Our commitment is for 350 hubs over the course of this Parliament, and 18 months into the Parliament we are already at 270—hon. Members will see the trajectory. Of the 270 hubs that have been announced, 225 are now open. The remaining hubs that have been committed to are yet to open, but we expect them to in due course. To answer the hon. Member’s question, it is entirely possible that the 350 target will be surpassed, as and when more communities need banking hubs. I would welcome that, it sounds like he would welcome it and I am sure that other Members across the House would too.

Banking hubs provide assisted cash services through post office counters alongside community bankers from individual banks who meet customers face to face in a private room to offer support, as they would in a traditional branch, as has been mentioned. I was very sorry to hear the experiences with community bankers noted by the hon. Member for St Ives; that was not what I understood from colleagues in this place and what I have heard anecdotally outside this place. Indeed, when I visited the banking hub in Warwick in your constituency, Mr Western, I did not see queues of people waiting to see a community banker. Everything was happening in an orderly way, and community bankers could see people in a timely fashion. Nevertheless, I note the experiences that the hon. Member put on the record, and I am more than happy to look specifically at the issues in that banking hub.

[Andrew George]

I want to make sure that the Minister understands that I was simply describing what the community banker working on behalf of Lloyds was providing. I was referring to the Lloyds replacement for the closed branch, not a banking hub.

[Matt Western (in the Chair)]

I remind the hon. Member that he will have time to wind up at the end. Perhaps the Minister could start to conclude her remarks.

[Lucy Rigby]

On that cue, I will skip further ahead in my speech. I was going to talk about all the services that are available at banking hubs, which the industry is working hard to increase. Customers can now open accounts, change names and addresses, register complaints or receive help with online and telephone banking. I have met the industry on a number of occasions and I would like to put on record that we are working to try and make sure that the services provided at banking hubs meet the needs of communities. Fraud and scams were mentioned; they are concerns that the Government are thinking about.

Let me cut to the chase and answer many of the questions that have been raised. Despite everything that I have said about the importance of banking hubs and our manifesto commitment to open 350 of them, it would be premature to conclude that all communities are consistently receiving sufficient support for their banking needs. That has been clear from the contributions of hon. Members in this debate. In direct response to one question was raised by the hon. Member for St Ives—a point that was also well articulated by my hon. Friend the Member for Stoke-on-Trent North (David Williams)—that is why, as might be expected, we are keeping any need to go further, including on access to banking services, under close review.

There is much more I could say about the health of our high streets, digital and financial inclusion, and alternative options to banking services, but in the light of the time and your strong cue, Mr Western, I will wrap up there.