Money Wellness

managing your money

Published 05 Sep 2024

2 min read

Banks must make sure people can access cash before closing branches

New rules are being introduced on 18 September to make sure people can still access cash when their nearest bank or building society closes.

An illustration of a scene inside a bank with people using ATMs and a woman exchanging money at the counter.
Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Published: 5 September 2024

Any significant gaps will need to be plugged by additional services, the Financial Conduct Authority (FCA) says.

The new powers won’t stop any branch closures, though some branches will have to stay open until alternative cash access is available.

Why are so many banks closing?

Thousands of high street branches have closed in the last decade, with 69 set to close in September 2024 alone. Of these, 20 have no other branches nearby, putting people at risk of financial exclusion.

Banks say we prefer to use mobile and online banking, with fewer people choosing to visit their local branch.

But three million people rely on cash – especially lower-income families who are often excluded from digital services.

Earlier this week, Hexham MP Joe Morris used his first parliamentary debate to call for action to stop rural communities becoming “banking deserts”.

Economic secretary Tulip Siddiq said the government is “committed to improving connectivity and digital access for all”.

What do the new rules mean?

The new rules mean branch closures will need to be weighed up against existing cash services.

Major gaps will need to be plugged by:

Banks will have to consider local communities’ needs before closing any branches and see if additional services are required.

They’ll also have to address concerns about local cash access.

Which banks and building societies will need to plug the gaps?

The government has said these 14 big-name banks will need to take action:

  • AIB Group
  • Bank of Ireland (UK)
  • Bank of Scotland
  • Barclays
  • Co-op Bank
  • Clydesdale Bank
  • HSBC
  • Lloyds
  • NatWest
  • Nationwide
  • Northern Bank
  • Santander
  • Royal Bank of Scotland
  • TSB

Has your local bank closed?

More than 600 bank branches closed in the UK last year, with more set to shut their doors for good by the end of 2024.

Banking hubs are the main alternative for lost branches, although they aren’t a like-for-like replacement – read more about them in our guide.

Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.

Published: 5 September 2024

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

Read our latest news or check out other popular pages on our website:

Michelle Kight - Money Wellness

Written by: Michelle Kight

Financial content writer

Published: 5 September 2024

More blogs on managing your money

View all
HMRC sending tax reminders to Vinted and eBay sellers
managing your money

HMRC sending tax reminders to Vinted and eBay sellers

You could be taxed if you earn more than £1,000 a year.

Read more
Royal Mail to increase stamp prices
managing your money

Royal Mail to increase stamp prices

First and second-class stamps going up in price on 7 April.

Read more
Supervised toothbrushing to be rolled out in deprived areas
managing your money

Supervised toothbrushing to be rolled out in deprived areas

600,000 children to benefit from new programme.

Read more
Average Customer Rating:
4.9/5
Independent Service Rating based on 10835 verified reviews. Read all reviews