Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what guidance her Department provides to banks to encourage fair treatment of non-charitable community groups in relation to service charges and account fees.

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

The provision of bank accounts to organisations, including companies, charities, and partnerships, is a commercial matter and differs fundamentally from the provision of accounts to individuals, due to differences in legal status, risk, and regulation. The Government continues to monitor wider access to bank account provision but recognises that this is largely a commercial matter in which it does not intervene.

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 other community groups in accessing banking services. This includes an account finder tool for charities and community groups, and includes information on fees.

It is important that community groups consider a range of providers for their banking needs, as this encourages competition, improves choice, and helps keep prices competitive.