I beg to move,
That leave be given to bring in a Bill to make provision about the delivery of in-person banking services; to require the Financial Conduct Authority to set standards for the provision of in-person banking services; and for connected purposes.
In places such as Hayling Island and Emsworth in my constituency, if individuals cannot bank online or travel to the next town, they cannot bank at all. Across the country, this is not an isolated problem; it is the reality for millions of people. There are now nearly 50 constituencies —represented by Members on both sides of the House—without a single bank branch left, and over 90 more are down to their final branch. Since 2015, more than 6,600 bank branches have closed. That is around two thirds of the network we once had. In-person, face-to-face banking services have, in many places, simply disappeared. While online banking works for many, it does not work for everyone. The latest Financial Conduct Authority figures confirm that more than 3 million people in the UK do not use online banking.
When it comes to older people in particular, Age UK reports that nearly four in 10 over-65s who have a bank account do not manage their money online, and three quarters still want to carry out at least some banking in person. Which?, the consumer rights organisation, makes the important point that when branches close, people do not just lose a building; they lose access to help when things go wrong. For older people, people with disabilities, small businesses handling cash and people in rural, suburban and coastal communities, it is not about convenience, but independence, practicality, dignity and fairness.
I have so far outlined some of the challenges, but I should also state that significant progress has been made. It was the last Conservative Government who took action. Through the Financial Services and Markets Act 2023, we protected access to cash and supported the roll-out of banking hubs across the country. Today, those banking hubs are a Conservative success story. The trade body UK Finance reports that nearly nine in 10 customers would recommend using a hub.
I recognise the vital role that banks have played in this transition. Many have worked together to support and fund the roll-out of banking hubs, and they continue to provide services in communities where branches are closed, such as through mobile banks and pop-ups. I pay tribute to the post office network and its staff, who play a vital role in providing access to cash and basic banking services in communities across the country represented by Members across this House.
The introduction of banking hubs was the right approach. It was necessary, and it is already making a difference, but we now face the next challenge. Post offices and cash machines are an important part of the system and provide access to cash, but they were never designed to replace the full range of services provided by a bank branch. Now we must go further and protect access to face-to-face banking, because banking is not just about paying in or withdrawing money; it is about fixing a blocked card, resolving a failed payment, sorting out fraud, and getting advice and help when it matters most.