Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of guaranteeing access to free banking services for small charitable groups at (a) Post Office branches and (b) banking hubs.

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

Decisions about the provision of banking services, and associated fees, are primarily commercial matters for banks who must meet strict financial crime and customer due 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, which may explain the fees applied.

It is important for charities to shop around to ensure they pick the most appropriate banking product for their needs. UK Finance worked closely with the charity sector and Government to produce an ‘Account Finder’ tool designed exclusively for charities and voluntary organisations so they can browse providers and accounts easily, including their charges.

The Government understands the importance of banking services to communities and is committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Over 270 hubs have been announced so far, and more than 225 are already open.

Banking hubs provide personal and business customers with access to everyday counter services, including cash withdrawals and deposits, balance enquiries and bill payments. They also contain dedicated rooms where all customers can see community bankers from their own bank to carry out other banking services as they would in a traditional bank branch.

The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, and pay bills at over 10,000 of Post Office branches across the UK. Fees for these services remain a commercial decision for the bank providing the account.