Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of establishing a legal right to basic banking services for charities.

Charities make a valuable contribution across the country, and it is important that they can access suitable banking services.

Decisions about the provision of banking services, including whether to offer accounts to particular organisations, are primarily commercial matters for banks who must meet strict financial crime and customer diligence obligations. Charities and community groups often have more complex account structures (for example, multiple trustees), making their banking needs more expensive and operationally demanding. The varying complexity and features of non-personal accounts, together with financial crime obligations, mean there is no ‘one size fits all’ solution for the sector.

At the Government’s encouragement, however, UK Finance - working with banks and charity representative groups - have produced the Voluntary Organisation Banking Guide, which supports charities and community groups in accessing banking services. This includes an account finder tool for charities and community groups.

The Government continues to monitor evidence on access to banking services, including for charities and community groups, while recognising the need to balance customer protection with providers’ obligations to prevent financial crime and maintain the integrity of the financial system.