Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department are taking to ensure rural communities can access in person banking services.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers in rural areas and across the country.

Through the Financial Services and Markets Act 2023, the Government gave the Financial Conduct Authority regulatory responsibility for access to cash. Its rules ensure cash continues to be a viable method of payment for the millions of people who depend on it by providing reasonable access to cash withdrawal and deposit facilities for individuals and businesses, including free services for personal accounts.

In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 200 are already open. Government is working closely with industry on this commitment, including through regular ministerial engagement. Most recently, on 8 January, I chaired a roundtable with banks, Cash Access UK and UK Finance to discuss banking hubs.

Banking hubs are allocated based on independent assessments by LINK, which consider factors such as branch closures, cash reliance and community vulnerability. The criteria also differentiate between rural and urban areas. For example, LINK applies a wider three-mile catchment area in rural locations to recognise that villages often rely on nearby market towns.

Customers can also access everyday banking services at a nearby Post Office. The Post Office Banking Framework allows personal and business customers of participating banks to withdraw and deposit cash, check their balance, pay bills and cash cheques at over 10,000 Post Office branches across the UK. The Government protects the Post Office network by setting minimum access criteria. These include ensuring that 99% of the UK population lives within three miles of a Post Office and 90% of the population within one mile.

Beyond bank branches, banking hubs and Post Office banking services, some banks also provide points of access through initiatives such as pop-up services in libraries and community centres, or mobile banking vans serving remote areas. The Government supports initiatives which give customers access to in-person banking, as well as digital access.