Treasury issues statement over legal changes affecting all UK bank customers

The Government has issued a statement about the future of banking in the UK. The update relates to key changes impacting customers with all major UK banks, such as Barclays, Lloyds, NatWest and Santander.

Conservative MP Wendy Morton asked in a written question in Parliament about banking provision across the UK.

She wanted to know specifically if ministers had assessed the criteria used by LINK to decide on where banking hubs should be set up.

LINK is an interbank group that connects many UK cash machines, allowing customers with different banks to use any cash machine within the network. When a bank branch closes, the group assesses the in-person cash provision in that area, to decide if a banking hub is needed.

Bank branch closures coming soon

There are a string of bank branches set to close from July to September 2026, including branches of Lloyds, NatWest and Halifax.

The MP for Aldridge-Brownhills in the Midlands also asked whether an upcoming independent review of access to banking services would look at whether these criteria are suitable for "rural, coastal and market town communities".

This report is under way and will look at topics such as what in-person banking services are essential for customers to access and what harm is caused by the decline in services in local areas. Recommendations will be presented to the Government in October 2026 off the back of the report.

Ms Morton also asked if communities who were previously refused a banking hub will be able to "seek reassessment" once the review is published. Economic Secretary to the Treasury, Rachel Blake, provided an answer from the Government.

Treasury minister response

She explained that LINK looks at several factors when determining the cash access needs of a local area, such as "the size and vulnerability of the population, existing and remaining cash access facilities and the number of shops".

The group also look at the demographics of those who live in the area, and whether people can travel to nearby facilities. She said that LINK bases it assessment on a "catchment area" of three miles in rural locations and one mile in urban areas.

Ms Morton said there are some stipulations under UK law that impact this question of bank branch provision. She said: "The FCA [Financial Conduct Authority] is legally required to keep its rules under review, including those relating to access to cash.

"Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. LINK's access to cash assessment process can be found on its website."

The FCA has rules in place meaning that bank and building societies have to review the cash access provision in an area in two cases. The first is when a change is made to services in an area, such as a branch or Post Office closing or changing its operating hours.