In-Person Banking Services

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.

There are 3 million fraud cases a year, and most begin online. When something goes wrong, having someone to help in a face-to-face context can be the difference between stopping the fraud early and someone losing their life savings. For those who are offline, it is not just a theoretical issue. A pensioner with a frozen account should not have to travel miles just to speak to a human being. A small business should not be left waiting on hold when it needs to pay its customers, suppliers or staff. A first-time buyer should not have to navigate the complex mortgage market from just an app. Those are just some of the gaps in the current system, and this Bill would address those gaps and more.

The Bill would develop a model that is not only fair but sustainable, and that works for consumers, banks and the long-term future of our high streets and communities. It would shift the focus away from access to cash to access to wider in-person banking services, and it would ensure that banking hubs provide what people actually need: help to manage their money face-to-face when it matters most.

I have seen this issue play out at first hand in my Havant constituency. Since 2015, we have lost more than 90% of our bank branches. Barclays, HSBC, NatWest, Halifax and Lloyds have all closed, leaving just one building society branch—Nationwide—in Havant town centre. I have worked with residents, Ministers and Link over several years to secure a new banking hub for our community, and it is due to open in the coming weeks.

That progress shows that the model can work, but it also highlights its limitations, because under the current law, hubs are only delivered when access to cash is judged to be inadequate. If there is an ATM on the high street or a post office providing deposit and withdrawal services, a banking hub may not be deemed necessary, despite the lack of wider banking services in the area. In practice, that means that many people, including in places such as Emsworth and Hayling Island, cannot get basic banking services or basic banking problems resolved. They are still travelling miles, still struggling to speak to someone, and still left without the support that they need. This is not a failure of the idea; it is a gap in its design, which this Bill would resolve.

It is worth being clear that the Bill is not about mandating a return to the old model of bank branches on every high street. Instead, it is about ensuring that the modern banking system that we have created works for everyone.

In developing the Bill, I have engaged with a wide range of stakeholders including the Post Office, UK Finance, Which? and Age UK, all of which recognise the need to go further in ensuring access to in-person banking services outside traditional branches. In return, I have aimed to be equally pragmatic when drawing up the Bill and leading the campaign for more banking hubs. For example, I recognise that many people can rely solely on mobile or online banking and rarely have to step into a bank branch or a banking hub. I am also not wedded to a banking hub being a bricks-and-mortar building with fixed high costs. A hub could be a modular building, a pop-up, a mobile unit or located inside existing buildings such as a supermarket, a post office or a community centre. What is important is the ability to speak to someone face to face.

The Bill is not about turning back the clock, resisting innovation or looking to the past. Instead, the Bill and my wider campaign are about the practical evolution of a system that is already working—a timely refinement to reflect how people actually use banking services today. In fact, the Bill is about making sure that progress works for everyone, because we cannot allow a two-tier system to emerge, with one for those who can navigate apps and algorithms and another for those who cannot.

I welcome the constructive engagement that I have had with the Treasury and the City Minister on this issue. There is clear recognition on both sides of the House that more must be done to expand banking hubs. The Bill offers a practical, proportionate and sustainable way forward. Let us build on what works and fix what does not, and let us ensure that banking hubs deliver not just access to cash but access to banking, because no one should be locked out of managing their own money simply because they cannot do it online. I urge colleagues across the House to support the Bill, and I commend it to the House.

That Alan Mak, Sir Jeremy Hunt, John Glen, Joy Morrissey, Andrew Griffith, Claire Coutinho, Laura Trott, Jack Rankin, Nick Timothy, John Cooper, Neil O’Brien and Lewis Cocking present the Bill.

Alan Mak accordingly presented the Bill.

Business of the House (Today)

That, at this day’s sitting, the Speaker shall not adjourn the House, if a Message from the Lords Commissioners is expected, until that Message has been received.—(Stephen Morgan.)