The UK Treasury has issued a statement concerning legal changes that will impact customers of all major UK banks, including Barclays, Lloyds, NatWest, and Santander. The update comes in response to a written parliamentary question from Conservative MP Wendy Morton, who inquired about banking provision across the country, specifically whether ministers have assessed the criteria used by LINK to decide where banking hubs should be established.
Background on LINK and Banking Hubs
LINK is an interbank network that connects many UK cash machines, enabling customers of different banks to use any cash machine within the network. When a bank branch closes, LINK assesses the in-person cash provision in that area to determine if a banking hub is needed. The MP for Aldridge-Brownhills also asked whether an upcoming independent review of access to banking services would evaluate the suitability of these criteria for rural, coastal, and market town communities.
Independent Review of Access to Banking
The independent review is currently underway and will examine topics such as which in-person banking services are essential for customers and the harm caused by the decline of services in local areas. Recommendations from the review are expected to be presented to the Government in October 2026. Ms. Morton also inquired whether communities previously denied a banking hub would be able to seek reassessment after the review is published.
Treasury Minister's Response
Economic Secretary to the Treasury, Rachel Blake, provided the Government's response. She explained that LINK considers several factors when assessing the cash access needs of a local area, including the size and vulnerability of the population, existing and remaining cash access facilities, and the number of shops. The group also examines the demographics of residents and their ability to travel to nearby facilities. According to Ms. Blake, LINK bases its assessment on a catchment area of three miles in rural locations and one mile in urban areas.
Current Legal Protections
Ms. Morton noted that there are existing legal stipulations affecting bank branch provision. She stated: "The FCA 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 requiring banks and building societies to review cash access provision in two scenarios: when a change is made to services in an area (e.g., a branch or Post Office closing or changing hours) and when a 'cash access request' is submitted by a local resident or business. Such requests can be made via the LINK website.
No Existing Protections for In-Person Banking
Despite these measures, Ms. Blake acknowledged in her response that there is "currently no existing legislative or regulatory protections for the provision of access to in-person banking services." This gap is why the independent review has been commissioned. On the review, Ms. Blake said: "The chair will provide a report and recommendations to the Government upon its conclusion, at which point the Government will consider any future actions. Alongside the review, the Financial Services and Markets Bill includes a power to allow the Government to take action in future to protect access to banking services, should this be necessary. This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the review supports intervention."
