High street bank giant told to U-turn on major new change - 'failing pensioners'
A major UK bank has been told to U-turn on a key change after being accused of failing pensioners. Lloyds has announced that it will no longer allow customers to deposit cheques at Post Office branches.
Caroline Abrahams, charity director at Age UK, said: "We urge Lloyds to reconsider its policy of not accepting cheques in Post Offices and Banking Hubs. Although cheque use has declined in recent years, there were still 91million used in 2024, and it's often older people on lower incomes and living in difficult circumstances who continue to choose to pay this way.
"If this approach becomes the norm, this group of people will find it even harder to manage their money and make payments." High street banks, she added, provide an essential service for millions of older people, and it is important that those "digitally excluded" or in a vulnerable situation can continue to bank.
The charity boss added: "Furthermore, failure to accept cheques risks undermining Banking Hubs, which have been designed by the banks to ensure the continuation of physical banking services in areas where it's not commercially viable to run branches.
"The banks deserve lots of credit for setting Hubs up, but if their vulnerable customers can no longer conduct an essential function like paying in cheques then Hubs will be failing to service those most in need, which is central to their purpose."
Lloyds has emphasised that while the option to deposit cheques at the Post Office counter is no longer available, it has introduced a service with which customers can put their cheques in the post, at any post box or at the Post Office, with the funds clear to the same timescales as the previous counter service.
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A spokesperson for the banking group said: "Customers can make the most of our new postal cheque deposit option, allowing them to conveniently send their cheques via any post box or at any Post Office, with the same processing times as before - and it's free for customers who need it."
Most customers use the Lloyds app as the easiest way to pay in a cheque, it added, by taking a photo on their phone.
Industry figures, the group also emphasised, show that cheques have been in long-term decline and accounted for only 0.1% of all UK payments in 2024.