Banks shut up shop

Banks continue to close branches to save costs, denying cash and banking facilities to an increasing number of people.

Lloyds Banking Group, which includes Halifax and Bank of Scotland, announced earlier this year that a further 136 branches will close between May and March 2026, on top of the 55 set to close between January and September.

Jobs cut

The trade union Accord said that the Lloyds now has 23 active redundancy and branch closure programmes, as jobs are cut in mortgage sales, business and commercial banking, risk and transport.

The consumer group Which? estimates that 6,303 bank branches have closed since January 2015, a drop of 64 per cent. Over the last ten years, Lloyds has closed 1,431 branches, NatWest Group 1,431 branches and Barclays 1,236.

Cash

The banks defend these cuts by claiming that cash is on the wane. But LINK, the ATM network provider, says seven in ten UK adults use cash at least once a fortnight.

Banking “hubs” have been set up in some places – a limited response to bank branch closures which the government is celebrating. So far there are 115, with a promise of up to 350 by 2029 – hardly keeping up with the pace of fresh closures.

Not adequate

Banking hubs are shared between the banks. Customers can pay in cheques, deposit or withdraw cash and talk to a “community banker”. But they are not adequate and full services are not always available – opening or closing accounts for example.

In many towns and cities post offices are now the only place offering banking services. But they are under threat too – in November 2024 the Post Office announced closures of up to 115 main branches with more change to come.