Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 14 March 2025 to Question 36179 on Bank Services: Visual Impairment, what steps her Department is taking to ensure that the FCA monitors the potential impact of branch closures on vulnerable customers; and what enforcement action is available when firms fail to comply with guidance.

Banking has changed significantly in recent years with many customers benefitting from the ease and convenience of remote banking. The Government understands the importance of face-to-face banking to communities and high streets across the UK, and is committed to championing sufficient access for all as a priority.

The Government also recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.

The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Under its rules, the UK’s largest banks and building societies are required to assess the impact of a closure or material alteration of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.

The FCA is required by law to keep its access to cash rules under review and is monitoring the impact of these rules on an ongoing basis to ensure they deliver the right outcomes for businesses and consumers.

The FCA also requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers, such as the elderly and disabled. Additionally, under the Equality Act 2010, banks must make reasonable adjustments to ensure their services are accessible to all.

Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.

Furthermore, the Government is working closely with industry to roll out 350 banking hubs across the UK. Banking hubs offer everyday counter services provided by Post Office staff, allowing people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 160 are already open.