Access to Banking Hubs: Hertfordshire

16:30:00

I beg to move, That this House has considered access to banking hubs in Hertfordshire. It is a pleasure to serve under your chairship, Sir Desmond. I thank Clementine Manning from my office for the extensive work she has put into researching for this speech and many of my other contributions to the House. I urge colleagues to be gentle with me; this is my first Westminster Hall debate, and I have yet to learn how to do these things properly. I am grateful that the hon. Member for Strangford (Jim Shannon) is here to show me the way, with hopefully an intervention in due course. Access to banking services is essential for everyone across the country, and more and more our rural and semi-rural areas are seeing their access to banking services reduced. That is a particular issue for those who are unable to use technology to access online banking, and I know that many who are able to use online banking still feel more reassured if they are able to carry out banking activities face-to-face. Having seen the immensely positive impact that increased access to banking services through the post office has had in Rickmansworth in my constituency of South West Hertfordshire, I am campaigning for the establishment of a banking hub in Abbots Langley, another area in my constituency, to ensure that as many of my constituents as possible are able to access these essential services. I appreciate that everyone else here wants the same. Hertfordshire in particular has felt the impact of the withdrawal of banking services, as, despite there being over 160 banking hubs now opened, just four are in Hertfordshire, with none in my constituency. Rural areas are twice as likely to depend on their local post office for cash and banking services, and it is essential that people in those areas are not left behind. Post offices have always been, and remain, critical assets to our communities, providing essential services. I have had the pleasure of meeting local postmasters in Abbots Langley and Rickmansworth, as well as visiting a Royal Mail distribution centre, to learn more about the sheer volume of service provided by their hard workers. From speaking to those postmasters, the essential role that they play in supporting our communities in all ways is clear. With many people unable to use technology, or simply more comfortable with face-to-face provision, the provision of banking hubs is just one of those essential services. In the UK as a whole, 99% of the population live within three miles of a post office branch, as do 97.9% of the UK’s rural population. Post offices also make up more than 66% of all branch-based cash access points in the UK. That is particularly relevant because of the decline in the number of bank branches. This is not just an issue in Hertfordshire or my constituency; across the UK, we have seen 6,200 bank or building society branch closures since 2015. In my constituency of South West Hertfordshire, 89% of banks have closed since 2015, leaving us with only a Nationwide in Rickmansworth.

My hon. Friend is right that this is a problem felt across Britain, as banks abandon their customers and close branches in my constituency in Crowland, the Deepings, Holbeach, Long Sutton and Sutton Bridge. The key thing about this issue is that it affects those least able to bank online; it also affects all of us who believe that banking should be an experience where people meet other people and personal service counts. I thank my hon. Friend for this debate. I call on the Minister to have more banking hubs, as the Payment Choice Alliance has requested—I hope she will say that when she sums up.

My right hon. Friend has obviously had early sight of my speech, because I was going to get on to exactly that about human interaction, but I will let colleagues hold off for a few minutes while I carry on the main body of my speech. As my right hon. Friend said, the situation is deeply desperate, but sadly, not unique to South West Herts. I know other Members in this House will be feeling similar circumstances, as one in seven constituencies across the UK have only one bank or no bank at all. Access to cash is essential, and it is important that we retain the ability to withdraw and deposit cash to support that, particularly as that allows those who do not use online banking to keep an eye on their personal finances. The post office supports this vital service and is essential for people in my area. On average, £1.6 million is withdrawn from post offices in my constituency every month, while £3.5 million is deposited. Although the post office provides an amazing service, a banking hub in a post office gives people proper support. We must prevent the closure of post offices, many of which are now run by a single person and are not necessarily profitable. It would be a great damage to all our areas if post offices were to close too. Although post offices such as the one in Rickmansworth have stepped up to provide greater banking services than those normally available, we cannot expect our constituents to rely on post offices to replace the banks if there is no banking hub in place, as they do not provide the same level of service. Although Rickmansworth is fortunate to have some banking services available via the post office, as well as in the Nationwide branch, since I was elected in 2019 South West Hertfordshire has lost NatWest, Barclays and Santander in Rickmansworth.

The hon. Gentleman is making an excellent point about the need for in-person banking services. In my constituency, we have experienced exactly what he has described in the south-east of England. My experience is that many who are vulnerable, or overwhelmed by getting into the town centre or have mobility problems are particularly affected, and so are many small businesses that deal in cash. Would the hon. Gentleman like to comment further on the need for those groups to be better served?

Once again, an hon. Member has pre-empted part of my speech. As the hon. Gentleman alludes to, the issue is not specific to the south-east, but occurs across the country. I look forward to reassurance from the Minister in her speech. The situation is worse in other parts of my constituency. Many of my residents do not have access to any banking services on their high street. That is particularly the case in Abbots Langley where, in 2021, the Barclays branch closed, leaving residents in the town and surrounding area with no access to banking services. The issue matters greatly to people in my constituency. I joined forces with our local Conservative councillors, Vicky Edwards and Ian Campbell, to support a campaign to bring a banking hub to the post office on the high street. I met with the local postmaster and Vicky and Ian recently to discuss the value that would bring to constituents.

My hon. Friend is making an excellent speech. I have had similar challenges in my constituency in the Scottish Borders. Like him, I have been campaigning for banking hubs—in Selkirk and Eyemouth. Indeed, I presented a petition in the House of Commons a few weeks ago. The banking hub we have in Jedburgh is working very well, but part of the problem for getting new banking hubs is the criteria that Link uses to determine whether a community is suitable. Does my hon. Friend share my concerns, and will he put further pressure on the Minister to persuade Link to extend the criteria, so that more communities can get the benefit of banking hubs?

My hon. Friend is a doughty champion for his constituents. Part of my remarks today, and I am sure of others’ later in the debate, concerns that exact point about increasing flexibility. We must not create criteria for banking hubs that do not necessarily solve the problem; we are trying to solve access to cash and banking services for all our constituents, irrespective of where they live. More than 1,300 residents have already signed a petition in support of our campaign in Abbots Langley for a banking hub. I continue to push hard for that to be achieved, as that area in my community would greatly benefit from a banking hub as an obvious solution to the current lack of access those residents have. Returning to the importance of access to cash, it is essential that the key service provided by banks continues to be available to people. I appreciate that we are moving increasingly towards a cashless society. It is rare now to find a shop that does not accept card payments, or indeed accepts cash at all. The idea of carrying emergency cash may, for many of us, seem less common. As someone with a background in small business, I understand the importance of cash for small and medium-sized businesses. Although ATMs make cash available to the wider population, it is not the same as the face-to-face interaction that a banking hub provides. I am glad that the major banks have recently signed a five-year access to cash deal with the Post Office to allow free withdrawals and deposit of cash, but that is a small step compared with the need for the services that banking hubs provide. Of small businesses, 28% use cash at least weekly, and with more than 5,500 small businesses in South West Hertfordshire, banking facilities are not a service they can go without. Ahead of the debate, I thought it was important to speak to local businesses in my area. I contacted businesses across Abbots Langley, Rickmansworth and Kings Langley for their views on banking services and the role that cash plays in their everyday business. Many of the businesses I engaged with supported banking hubs, because they regularly need to deposit cash. Business owners in Abbots Langley told me that because they have no access to banking services, they often have to travel long distances to Watford to deposit large amounts of cash, which is time-consuming and potentially unsafe. That would be solved if Abbots Langley had a banking hub. Small business owners are not the only group affected by the digital exclusion that comes with the loss of high street banks. Nearly a third of people over the age of 65 across the UK say that they feel uncomfortable using online banking, particularly for large or delicate transactions. Some 19% of people in my constituency are over 65. Having a banking hub allows the elderly and vulnerable to feel more comfortable, because they can access and deal with their finances in person. It is great that people often feel that they can trust their postmaster. Again, this may be some of the only social interaction that many people have, and it benefits their mental health and wellbeing. It is not just the elderly who are affected by the move towards a cashless society. I have long advocated ensuring that the infrastructure in South West Hertfordshire, including essential services such as banking, is accessible for everyone. Those with a disability or impairment are also being impacted by the move away from high street banks. In a recent survey of a group of 2,700 people who had a disability or impairment, more than half said they had been negatively impacted by bank closures. They struggle with security features, authentication checks and speaking to their bank over the phone. They are simply left with no other alternative, and should not be forced to travel to other towns, often on unreliable, infrequent public transport, simply to access their money. More than 1 million people in the UK rely wholly on cash, and 8 million adults report that they would struggle in a completely cashless society. For the elderly and the vulnerable, the opening of local banking hubs reduces the risk of their becoming victims of financial abuse and allows them to remain independent. As I have said, post offices and the postmasters who run them are often more than just a post service. They see their regulars frequently, and will notice if someone has not been seen or does not look well. They are not healthcare professionals, but they are another set of eyes and ears that can tell how customers are doing. The process of opening a banking hub is currently undertaken by Cash Access UK, Link and supporting banks, and I look forward to meeting with Link shortly to begin discussions about getting a banking hub in Abbots Langley. I previously discussed the process with other colleagues, including my hon. Friend the Member for Broxbourne (Lewis Cocking), who expressed concerns about the parameters that are used to determine whether an area qualifies for a banking hub.

The hon. Gentleman is making an excellent point about this issue. My experience is that the criteria appear to be drawn too tightly, and that there is perhaps a lack of appreciation of the scale of need in some areas. In my own area, although there is frequent public transport from the Reading suburb of Caversham to the town centre, Caversham falls 1 minute outside the minimum criterion for travel time, yet it has thousands and thousands of residents, as well as a significant older and disabled population. Surely it would be wise for Link to consider the broader context, not just travel time.

The hon. Gentleman makes an excellent point, which I think will be echoed in later contributions. The criteria feel too stringent. With the Minister’s support, I hope that conversations with Link and others will mean that the criteria are a bit more flexible, so that banking hubs are accessible to all, rather than just fitting an arbitrary parameter. I have already expressed my concerns about the parameters used to determine whether an area qualifies for a banking hub, and I will emphasise in my meeting the importance of ensuring that the proximity of Abbots Langley to Watford should not prevent it from getting a banking hub, for the reasons that I have already outlined. The problem with semi-rural areas such as mine—and Reading, by the sound of it—is that the criteria established by Link for determining the need to set up a new banking hub are likely to miss areas such as Abbots Langley, because they focus on when the last bank branch in a town closed. Abbots Langley is a village that has not had a bank for a very long time. I will raise this with Link in my meeting, especially because villages and smaller communities have been disproportionately affected by bank closures, losing 70% of their banking network since 2015 compared with less than 50% in urban areas.

After a long campaign, we have finally been successful in securing a banking hub in Ilkley, despite having to wait for the last bank to announce its closure. However, securing access to cash is not just about securing a banking hub; it is about securing an ATM that people can access when the hub is closed. We found that, unfortunately, Cash Access UK and Link, which decide applications for hubs, have determined that we should not need an ATM on the outside of the building. Does my hon. Friend agree with me about the importance of such an out-of-hours facility?

My hon. Friend is a passionate advocate for his community, and his point about access to cash outside of office hours is really important. One of my community’s frustrations is that while they may have access to an ATM, the money runs out very quickly on, say, a Saturday morning, so if someone needed cash on a Sunday, they would have to travel further, because that cash machine would not be restocked until the following Monday. I agree with my hon. Friend and hope the Minister will take on board his point that it is about not just having a banking hub, but making sure that ATMs are available and stocked with cash at all times. Link has deviated from its standard framework for approving banking hubs in around 32 locations so far, and I hope that that could be the case in my area. I am sure that the hon. Member for Reading Central (Matt Rodda), my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) and others will encourage it to consider the exceptional circumstances in their own areas. The alternative to the establishment of a banking hub is for Abbots Langley post office to get enhanced banking services, such as a deposit service, similar to the one that was set up in Rickmansworth following the closures there. The Government should be doing more to ensure that all UK residents have access to adequate banking facilities. I will continue to work with local post offices, banks such as NatWest and Barclays, and Link to bring more banking hubs to my constituency, and I know that others in the Chamber are doing the same. We cannot allow our high streets and residents to be without access to financial services, and I hope to see the Government do more to support this endeavour.

Order. I suggest that Members limit themselves to five minutes.

16:47:00

It is a pleasure to serve under your chairmanship, Sir Desmond. I thank my hon. Friend the Member for South West Hertfordshire (Mr Mohindra) for securing this very important debate. In recent years, banking services have been withdrawing from my constituency. Every single high street has seen bank branches close, and we now have fewer of them, but Cheshunt has borne the brunt. Cheshunt is a busy town of 40,000 people, right in the heart of my constituency, but not a single bank branch remains. That simply cannot be right. The lack of in-person banking facilities is depriving individuals and businesses of access to vital services and, for so many older and vulnerable people, causing huge difficulty and frustration as they are forced to use digital services and smartphone apps. My own nan is one of them, and she is not happy about it. Across Broxbourne, more than 3,000 people are living with sight loss, and that group is particularly reliant on in-person banking services. Many cannot use online banking at all, and they feel the pressure that not being digitally connected puts on them. That is why they like going into a bank branch, to get help from a real person to access their cash. They might specifically pick a bank with a branch on the high street, but if it closes, some banks now require customers to use an app to get a code in order to speak to the bank over the phone. That does not solve the issue. It is the sensible view of me and my constituents that Broxbourne needs a banking hub and, in particular, that the town of Cheshunt would be the perfect place for one, as it is right in the middle of my constituency. However, as my hon. Friend the Member for South West Hertfordshire mentioned, the process for securing a banking hub is far from sensible. Link has told me that Cheshunt does not meet the criteria for a hub because “there are already cash access services and facilities within a 1-mile radius which are suitable for the needs of the local area” and “the deficiency does not” affect my constituents enough. Well, not having a bank really does affect my constituents. This is typical civil service protocol on where policies should be implemented and where they should not be. The rules simply need to change. Link points out that my constituents can take a 15-minute bus journey to Waltham Cross, where a handful of banks remain for now, but do not get me started on the state of the bus services in Broxbourne. It is true that there are bus stops in the precise centre of Cheshunt and a few of my constituents will be able to get a bus—if it turns up and it is on time. In most cases, buses simply do not turn up on time or do not turn up at all. However, the vast majority of the people of Cheshunt do not live on top of a bus stop. Link has told me that journey times of less than 15 minutes are deemed acceptable, but many of my constituents living in residential areas off the high street, in neighbourhoods of Cheshunt such as Flamstead End, Rosedale or Bury Green, or in the village of Goffs Oak have much longer journeys even to board a bus, let alone to travel to a bank. That is not acknowledged at all in the assessment process, which uses only an “approximation of the centre of the high street”. That is not acceptable; it does not reflect the wider catchment area of towns such as Cheshunt and the role that Cheshunt serves for my constituents. The criteria need to change to ensure that any town that wants a banking hub can have one. Surely that is within the Minister’s gift. I thank her for meeting me recently to discuss my campaign to get a banking hub in Cheshunt, but every time that I have asked for one, I have been told that we do not meet the access to cash criteria and that there is nothing the Government can do about it—they simply wash their hands of it. I was told in a written answer that it is all down to Link, or the financial services sector, or the Financial Conduct Authority. Well, I have met Link and it tells that it cannot help; I have met the Financial Conduct Authority and it says that it is up to the Government to change the law. Will it really take the closure of every bank in my constituency before we are even considered for a banking hub? It looks inevitable that that day will come.

My hon. Friend is making an excellent speech about banking services in Hertfordshire, but I want to make a broader point about the criteria for allowing banking hubs. To be fair to the Minister, she has engaged well with me, too, but surely the point has come for Government intervention, to try to persuade—or tell—Link that the rules have to change, because they are no longer fit for purpose, and that those communities that desperately need these banking hubs should be allowed to have them.

My hon. Friend makes an excellent point and I completely agree. Now is the time to change the rules and it is up to the Government to step up, be accountable to the electorate they serve and change the rules, rather than hiding behind unaccountable bodies such as Link, which do not determine the rules but just sit in their ivory towers and say, “This looks good on paper,” when it does not work in reality. I hope that the Minister will commit to go away and change the rules so that we can get more banking hubs open, not just in Hertfordshire but across the United Kingdom as a whole.

16:53:00

It is a pleasure to serve under your chairship, Sir Desmond. I thank the hon. Member for South West Hertfordshire (Mr Mohindra) for securing this important debate. I begin by acknowledging that my constituency does not fall within the boundaries of Hertfordshire; it is slightly further north. However, as we have heard, the issue of access to banking hubs is an important one across the UK. My constituents, like those of the other hon. Members here today, understand the difficulties brought about by banks closing. Older constituents who have no access to digital equipment or services are often the worst affected. For some, their family members step in to support them with things such as making NHS appointments, but for many, handing over control of their banking feels like a step too far and a loss of independence. Others have no family nearby to help. Being pushed to use complex online banking is not always appropriate for these customers. In addition, as we have heard, the ability to deposit cash is crucial for many local businesses, and with the closure of more and more post offices, it is a growing problem. Despite having many elderly residents, Bearsden in my constituency has lost all its bank branches and it appears that there is no access to an ATM. There are also no plans for a banking hub there. The Government have made assurances that by 2029 banks will have set up 350 banking hubs. The truth is that that is woefully inadequate and much too slow. The number of bank branches operating dropped from almost 15,000 in 1986 to just 5,745 by 2023.

The hon. Lady is making a powerful point and she is right about the number. The Payment Choice Alliance, to which I have already referred, estimates that if every community with a population of 5,000 or more were provided with a banking hub, there would be about 1,200 of them. Ministers want solutions, not just questions, and that is a solution. I invite the Minister to consider that: any community with a population of 5,000 or more that does not have a bank should have a hub. I think that would be reasonable.

I thank the right hon. Member for making a good point for the Minister to consider. The closure of branches and their replacement with only 350 hubs represents nothing more than big banks trying to increase their profits further at the expense of their customers. That is not just a mild inconvenience; it presents a serious accessibility issue, as we have heard. For the disabled, the elderly and those without technical know-how, bank branches are often a vital resource.

In addition to some customers not being comfortable using digital, some are unable to do so because they do not have broadband. I am sure the hon. Lady’s constituency is like mine. For some communities, if the bank branch has gone, using the banking app is not possible because the broadband capability is not there.

The hon. Gentleman is correct. Even in my constituency of Mid Dunbartonshire, we have dark spots where people cannot access wi-fi. That is an important point. A vital local resource, banks allow people to deposit cash and cheques, withdraw their money or check their details, and get help from staff. To allow the closure of banks without suitable access to a replacement banking hub is not just inconvenient; it is a step backwards for equality. With that in mind, I urge the Minister to look at the Liberal Democrat proposal for a financial inclusion strategy that would ensure that the Financial Conduct Authority and the Prudential Regulation Authority take into account financial inclusion. That would help to protect access to cash for those who need it, ensure that rural communities are not excluded from accessing resources and, importantly, support banking hubs.

16:58:00

It is a pleasure to serve under your chairmanship, Sir Desmond. I thank my hon. Friend the Member for South West Hertfordshire (Mr Mohindra) for securing the debate. Banking hubs are really important in his constituency, as they are in rural constituencies across the country, including mine. My constituency is 700 square miles of the most beautiful towns and villages, which are a delight. With that beauty and tranquillity come remoteness and lack of connectivity for many people, who can feel isolated. We have seen the decline of the high street bank over years. Some services that we took for granted are no longer available, though they are still of huge importance to local communities. We recently lost Lloyds banks in Bridgnorth and Ludlow, which is seen as a major loss to both towns. I was quick to launch a survey to find out what residents thought. They were overwhelmingly upset, because they still require face-to-face services and access to cash. We were fortunate that Dudley Building Society came to Bridgnorth recently, opening a branch just opposite my office, but it does not offer the full service of traditional banks, and setting up banking hubs, which is hard to do, is not viable at the moment. I wrote to many organisations to see what support we could get on our high street. Link came back to me and said it had conducted an assessment—as many Members have said—but it did not recommend any additional services in any of my rural towns. It believed that there was adequate access to cash and banking services for local residents in all those areas. I disagree with that. Bridgnorth is served by Nationwide and HSBC, while Ludlow has NatWest and Nationwide. However, if people are not with those banks, they are stuck. They might have been with Lloyds for years, only to find that they have to travel to Wolverhampton—or, if they are in Ludlow, to Hereford, which is probably 40 minutes away. That is not suitable for everyone. This is a reactive approach, just watching the decline of our high street. We should change the regulation so that we can be proactive and allow Link to put services into the high street. I do not want to wait for every bank to close before we can get a banking hub. That is not the right approach.

I thank the hon. Member for his part in this largely harmonious debate—although I challenge him briefly on which is the most beautiful constituency. I represent a constituency similar to his in many ways. The hon. Member for South West Hertfordshire (Mr Mohindra) registered the point about flexibility and Link. When that situation arises, the impact falls not just on those living within the tightly drawn parameters that Link draws, but on the more rural towns and villages that lie just outside those one-minute, 10-minute or 20-minute commuting distances. A hub would help businesses there, including hospitality businesses. Prudhoe in my constituency has just lost a branch, meaning that businesses have to go often from the borders of County Durham into Newcastle to access their bank of choice. Adding to the flexibility would be incredibly valuable and would grow and benefit the wider rural economy.

The hon. Member is right; I said that people have to go 40 minutes from Ludlow to Hereford, but some might take 20 minutes to get to Ludlow. Given the inaccessibility of remote areas and rural towns, the system is not working. When the Minister sums up the debate, I would appreciate it if she could address the issue of how Link assesses access to banking hubs and the criteria used, and if she could tell me what support she can provide to get more banking hubs in South Shropshire.

17:02:00

It is a pleasure to serve under your chairship, Sir Desmond. I commend the hon. Member for South West Hertfordshire (Mr Mohindra) for securing this debate. He said that it is his first Westminster Hall debate; no doubt, now that he has the taste for it, he will be back next week for another one. I jest, of course, but I am sure that he will be back at some time in the future. I am a strong supporter of banking hubs and offering communities the service that they deserve, so it is great to be present both to support the hon. Gentleman, and to ask the Minister for help constructively across the whole United Kingdom of Great Britain and Northern Ireland. Banks are not closing just in South West Hertfordshire; they are closing everywhere else in the United Kingdom. Over the past six or seven years, 11 banks have closed in my constituency. We feel the pain of that even today. Speaking locally, from the point of view of my constituency, local high streets in Northern Ireland have witnessed a series of banking closures over the past 12 to 24 months. The Ards peninsula, where I live, is a banking desert. All the banks that were on the peninsula have closed. In fairness, they have been replaced by two credit unions, and the post offices have been strengthened, so there are some things to fall back on—but the banks on the Ards peninsula are all away. They went to other towns and bigger cities, which do not have the same accessibility for those who need them, especially those who are vulnerable, elderly and isolated. The hon. Gentleman mentioned bus services, but they are not always available to get to the banks or even to the cities, so the accessibility of the services is limited. Banking and post office services are used daily and are essential to the lives of our constituents. Northern Ireland has a range of banking hubs across the province. This year, it was announced that two are to be developed in my constituency. One has opened in Comber. It is in an excellent location, exactly in the centre of the town. The post office is there, and the four banks—two of which used to operate in the town—do a half-day each in the Comber hub. From the point of view of a potentially good service, the hub is a step in the right direction. The other hub, in Ballynahinch, is to open shortly as well. The same offer will be available there; the banks that were in the town will do a half-day each and the post office is available within that. Will that meet all the banking requests that people have? Probably not—but it does, by and large, give people access to the banks. The problem I have with bank hubs is that, between when the banks closed and when the hubs were instated, there was a time of perhaps two years. Cash Access UK is delivering those hubs to support residents with the services that they require. We undertake a lot of discussion nowadays on digital inclusion and exclusion. While it is great that we as a society are able to modernise, that does sometimes mean our elderly population, who are used to doing things a certain way, are left behind. Face-to-face services that are accessible for them are imperative. I hope that in future we can look to a greater scope of hubs across the UK, which will also increase employment in local areas. I conclude with this comment as an example of the problem we are facing: last year one of my staff bought her first house, and her solicitor required a printed statement from her help to buy ISA for Barclays bank. The Barclays in Newtownards, where she lives, closed in 2023. The Barclays mobile service in Bangor, around a 15-minute drive away, could not carry out that function as it did not have the services available. She had to travel to the centre of Belfast, which is 40 minutes by car, to obtain a single, one-sided document. Banking hubs and mobile vans are great, but they must be accessible in terms of what services they can carry out for people; otherwise, in many cases, there is no convenience. Banking hubs delivers some things, but they do not deliver them all.

17:06:00

It is a pleasure to serve under your chairship, Sir Desmond. I congratulate the hon. Member for South West Hertfordshire (Mr Mohindra) on securing his first debate, and securing such an important one. It is a pleasure for me to respond on behalf of the Liberal Democrats, and as a fellow Hertfordshire MP. I have been particularly struck by the number of contributions from colleagues who have highlighted just how important access to cash is for so many people, particularly older people, small businesses and people with disabilities. I know from my own experience supporting somebody who is learning disabled that, even in a physical bank, the design and signage can be incredibly confusing and put people off—let alone when banking online, even if they have the internet to do so. We would all welcome comments from the Minister about what more the Government can do to support people who are not digitally confident, and in areas where people are digitally excluded. We Liberal Democrats welcome the Government’s move to introduce more banking hubs and their promise to set up 350 banking hubs by 2029. We continue to call on the Government to do more to protect access to cash and face-to-face banking services. I know that the Government will shortly be introducing a national financial inclusion strategy, so I repeat the calls from my hon. Friend the Member for Mid Dunbartonshire (Susan Murray) and ask the Minister to confirm today whether that strategy will include measures to ensure that both the Financial Conduct Authority and Prudential Regulation Authority will be required to have regard to financial inclusion. I also ask the Minister whether the Government are able to guarantee that they will at least consider expanding the roll-out of banking hubs beyond the 350 target if they consider that that is needed. We Liberal Democrats welcome the changes made last September to the eligibility criteria, which previously excluded towns and villages with a building society, even if that building society did not provide business banking services. That change has enabled Liberal Democrat-led Harpenden town council to open a new banking hub in the town hall. I give credit to local resident and campaigner Derek French, who has been a real driving force in that constituency. I know that colleagues in the town, which is very near to St Albans, are working with the Post Office, Cash Access UK and other partners to find a permanent home for that well-used hub. I congratulate the town council and Derek French on driving that fantastic project forward. I understand the frustration of residents in Abbots Langley, which is not too far from St Albans, because residents there lost their last remaining bank, the Barclays branch, in 2021. I know that Liberal Democrat-run Three Rivers district council is keen to support the efforts of the hon. Member for South West Hertfordshire in his campaign to secure a banking hub in the village, and I would certainly encourage him to reach out to work on a cross-party basis, as we often do in Hertfordshire. Across Hertfordshire, my Liberal Democrat colleagues have been hugely supportive of the temporary banking hubs in Hatfield and Royston and are keen to make sure that those hubs get permanent homes. In St Albans, we are fortunate to still have a number of banks and building society branches on our main high street, but many businesses rely on the incredibly busy and conveniently located Crown post office branch on St Peter’s Street for banking and cash-handling services. As the Minister may know, Post Office Limited has been proceeding at pace with plans to sell off the Crown post office branches, and we have had confirmation that ours will soon be put out to franchise. Will the Minister make sure that Post Office Limited guarantees access to personal and business banking services on our high streets when the final Crown post office branches disappear in the coming months? The villages around St Albans—Colney Heath and London Colney, for example—also rely on their local post office branches for basic banking services and access to cash. Finally, many areas that do not have branches, banking hubs or post offices have to rely on ATMs for access to cash. We have heard from a number of Members during the debate that, for many communities, it is frustrating not to be able to access cash outside core hours—and, of course, many ATMs are inaccessible for disabled people. The Royal National Institute of Blind People reports that fewer than four in 10 ATMs have audio assistance, which is critical to enable their use by the blind and partially sighted, and often machines are out of reach for wheelchair users or those with other impaired mobility. Once again, I congratulate my constituency neighbour, the hon. Member for South West Hertfordshire, on securing this valuable debate. We can all agree that banking hubs are a lifeline in rural and semi-rural areas, essential to our high streets and vital to make banking inclusive for all.

17:11:00

It is a great pleasure to serve under your talented leadership, Sir Desmond. It is very good to be here. I also congratulate my hon. Friend the Member for South West Hertfordshire (Mr Mohindra). This may be his debut debate in Westminster Hall, but I am sure that it is the first of many. He has always been a champion for his constituency and I am surprised that he has not been here a thousand times before. As he eloquently put it in his opening remarks, banking hubs show why banking must remain at the heart of all our communities, and we should cherish the role of banks in our society. I have long been a huge fan of the banks, having been on the banking commission, which was a great opportunity to see just how important they are. We all talk about their importance for banking local businesses and local communities, but banks perform two extraordinarily complicated functions. The first is taking money from where it has accumulated and delivering it to where it is needed—for loans for businesses and all the rest. But they also do something else—they are almost like Doctor Who in their ability to transform time. They take money that has been put on deposit overnight and turn it into a 25-year mortgage that pays for all our constituents to buy their homes and bring up their families. We must never forget how incredibly important banks are. The previous Government recognised the importance of maintaining essential banking services as a foundation for public confidence in the sector. We provided a system of free and convenient access to banking through Post Office’s branch network. The banking framework partnership between Post Office and more than 30 of the UK’s banks and building societies means that consumers and businesses can access banking services through the Post Office network where there is not an alternative bank. Post Office now has more branches than all the banks and building societies combined. I hope the Minister agrees that the banking framework was a real success story—one of many success stories, by the way—of the previous Government. However, we in the previous Government also recognised that post offices do not completely fill the hole left by the loss of the high street bank. That is why we also introduced banking hubs, as we have heard today, which have been a successful concept where they have been delivered. I welcome the fact that the new Government have now embraced the idea and set an ambition to deliver hubs across the country by 2030—I understood it to be 500, although the Liberal Democrat spokesperson, the hon. Member for St Albans (Daisy Cooper), said that it was 350, so it would be helpful if the Minister clarified exactly how many the Government are hoping to have. The new hubs, whether there are 350 or 500, are a new solution to meet wider banking needs, particularly in communities where the last bank branch has closed. Members have made many eloquent points about the decline of banking services in their constituencies. In my constituency, adjacent to that of my hon. Friend the Member for South Shropshire (Stuart Anderson), Stourport-on-Severn, my second biggest town, has just one bank left—a TSB—and Bewdley, the third biggest town, now has no banks at all. I hope the Minister will address how Members could be more involved in deciding where new banking hubs will be located—that is an important point. I am sure that all Members would like to have input and make representations to get these services in every constituency. Local knowledge and community engagement must be at the heart of these decisions. That is why Members of Parliament, as the elected representatives of these communities, must be part of that process. Banking is rightly a commercial sector, so I would also like to hear how the Minister can encourage banks to deliver their own innovations. For instance, the multi-bank kiosk proposed by the Building Societies Association has already been piloted. With a cost of just one third of a traditional banking hub, the kiosks offer a cost-effective, building society-led solution that could work alongside banking hubs in areas that have a strong mutual presence but lack a high street bank. Will the Government support the expansion of the kiosks and encourage more private sector innovation alongside banking hubs? I do not want to hold the room for too long, so I will draw my words to a close. Today’s debate and the recent Backbench Business debate on high street banks have shown just how much Members support high street banking services. I look forward to hearing from the Minister how the Government will support our high street banking services. Once more, I thank my hon. Friend the Member for South West Hertfordshire for the extraordinary hard work he does for his constituents.

17:16:00

It is a great pleasure to serve under your excellent chairmanship, Sir Desmond. I congratulate the hon. Member for South West Hertfordshire (Mr Mohindra); this may be his first Westminster Hall debate, but I am sure it will be the first of many. Can I just say how much I enjoy the debates in Westminster Hall? We often get a bit more time to express opinions, and the Government can give a greater degree of detail than I certainly could in the Backbench Business debate on the Floor of the House a few weeks ago. I thank all the hon. Members present, who have come from beyond Hertfordshire, if my geography is good. I know the beautiful rural areas of Shropshire extremely well because I have family there. When the hon. Member for South Shropshire (Stuart Anderson) was talking, I could not suppress a smile at his description of the beautiful hills of Shropshire, which is where I spend many of my recesses with my children. My parents live in his constituency, in the beautiful town of Ludlow. I could go on, but I had better stop there. From Shropshire to Strangford and beyond, we have heard perspectives from different parts of the country. I have met many hon. Members who have championed their constituencies and campaigned for banking hubs. It was good to hear from the hon. Member for Broxbourne (Lewis Cocking), who is a doughty champion. We have had a number of discussions in private and in the House, as well as in written questions. I know he has real concerns, and is campaigning, particularly, for the banking hub in Cheshunt. It was good to hear from the hon. Member for Mid Dunbartonshire (Susan Murray), who stressed the importance of rural areas, which I will come back to. The hon. Member for South Shropshire also mentioned that, referring to his 700 miles of beautiful countryside. He also asked about the criteria for the Link assessment, as did other hon. Members. It is always a pleasure to hear from the hon. Member for Strangford (Jim Shannon). He often asks difficult questions on a variety of subjects. The way in which he is able to range across different subjects in the House is really quite impressive. He talked about digital inclusion and exclusion, as did other hon. Members, and I will come back to that. I thank the hon. Member for St Albans (Daisy Cooper); I met her constituent Derek French, who is a doughty campaigner for access to cash and banking. I pay tribute to his work.

Derek French is a constituent in my neighbouring constituency of Harpenden and Berkhamsted —I just want to put that on the record. Harpenden very proudly defends its independence from St Albans and I do not want anybody to be inadvertently offended by my trying to secure some recognition from the Minister in the House, but I thank her for her congratulations.

I am grateful for the correction. I would not like to get in trouble with the hon. Members that represent different parts of Hertfordshire, not least our Parliamentary Private Secretary, my hon. Friend the Member for Hitchin (Alistair Strathern), who also represents a constituency there. I have better knowledge of Buckinghamshire, which is nearby, but I thank her for that correction to the record. I do not want to get in trouble with the hon. Lady’s colleague, the hon. Member for Harpenden and Berkhamsted (Victoria Collins), who was very active in our previous debate on this issue. I thank the shadow Minister, the hon. Member for Wyre Forest (Mark Garnier), for his speech. I will come back to the points that he made in a moment. I also thank, for their interventions, my hon. Friends the Members for Hexham (Joe Morris) and for Reading Central (Matt Rodda), the right hon. Member for South Holland and The Deepings (Sir John Hayes), and the hon. Members for Keighley and Ilkley (Robbie Moore) and for Berwickshire, Roxburgh and Selkirk (John Lamont). I have met some of them separately to this debate. I thank again the hon. Member for South West Hertfordshire—I was going to call him my hon. Friend; the debate feels very friendly. I have looked in detail at his constituency, thanks to his calling this debate, which is always a benefit of having such Westminster Hall debates, as he will attest to. I have had a look at Abbots Langley and Rickmansworth. I often go through his constituency on the way home, particularly the Rickmansworth area. They are very different parts of the constituency, from what I can see, in terms of the scale of the population and the number of shops in those areas. In Abbots Langley, I am told—he can correct me if this is not true—that there has been no community access request, as of our information. So if he does want to campaign for a banking hub there, it is open to him and his colleagues on the council he mentioned to request such a thing. Equally, I know he has an enhanced post office in Rickmansworth. Again, it is open to him or others in the community to make the application so that Link would assess the criteria.

I thank the Minister for her summing up. In terms of Abbots Langley, she is correct that the post office has not yet put in an application. It was first establishing the criteria and trying to learn lessons from others. The postmaster is now in a position to actively pursue that, and part of my local campaign is to support that. I hope the Minister will give her blessing and potentially a letter of support, if that is within reason, to ensure that Link and others think that is practical. In terms of the Rickmansworth one, she is correct. It is an enhanced banking hub rather than a full banking hub, as the debate suggests.

The hon. Gentleman will have to excuse me; I cannot offer letters of support. If I were to do that, there would be a number of letters that I would be writing. The Link assessment is independent and is what the previous Government set up and legislated for, in terms of access to cash. I will come on to that in a moment, if that is okay, and give him some more clarification on that. We need to recognise that the landscape for retail banking has changed significantly in recent years, turbo-charged by the pandemic. For example, last year we had 93% of people with current accounts access their bank online or via a mobile app. That obviously does not include the nan of the hon. Member for Broxbourne, who I have heard about on numerous occasions, but there are lots of people who access their banking in that manner. There has also been a shift among older customers, with 83% of those aged over 75 now using online or mobile banking, compared with just 27% in 2017. That is a marked shift. We know, however, that there are vulnerable groups, such as the elderly and people with disabilities, who very much appreciate and value in-person banking. Branches can act as anchors in a local community and are very important to small businesses, as several hon. Members mentioned, not least the hon. Member for South West Hertfordshire. When a high street branch closes, particularly the last branch on the high street, it can be a real blow to an area, especially where the alternatives are limited. That is why the Government, when we were in opposition and formulating our manifesto, secured the industry’s commitment to roll out 350 banking hubs—that is in totality. I say to the hon. Member for St Albans that that is not a limit, and actually, we are quite far along that journey. We have 230 that have already been agreed, and more than 170 are open. That includes 108 that have been open since the general election, and we are not even a year into our Government. We promised 350 by the end of the Parliament, but we are running much more quickly than that. I hope that we will surpass 350 by the end of the Parliament.

I would like to put on record my thanks to the Minister for her interaction with me in my endeavours to get a banking hub in Ilkley. Could I ask the Minister about the assessment criteria that Link and Cash Access UK are using? Is it the right course to get to the point where we are relying on the final bank to close before we start looking at applications? Secondly, does the Minister not feel it is right that when we do manage to secure a banking hub, an ATM could be located on the outside of that banking hub so that people could access cash out of hours?

The hon. Gentleman brings me to the meat of my speech, which I must move on to, as I do not have very long left. I always get lulled into a false sense of security in Westminster Hall, where I think I have quite a long time to speak. I made the position very clear on the Floor of the House a couple of weeks ago, when we had a similar debate. The hon. Gentleman will know that under the previous Government’s Financial Services and Markets Act 2023, Parliament legislated to protect reasonable access to cash. Specifically, Parliament gave the Financial Conduct Authority new powers to ensure that communities could both withdraw and deposit cash, but that governs only access to cash; it did not include access to in-person banking. The hon. Member asked about the Link criteria, an issue that has been raised in previous debates. The Government do not have the power to amend the assessment criteria. Any decisions on changes to Link’s criteria for access to banking services are an independent matter for Link. As he will know, the set-up of banking hubs is a voluntary initiative by the banks. I visited a very good banking hub in Buckingham that has different community bankers coming in every day of the week, which works extremely well. The hon. Member for South West Hertfordshire and others asked whether we are minded to change this situation. We continue to monitor it, and we have heard lots of concerns expressed today. I continue to meet hon. Members, and I have another session next week for those who, if they have not met with me, would like to. Currently, however, the Government are not minded to change the legislation. I am soon to meet John Howells, the chief executive of Link, and I have listened to the concerns of hon. Members, particularly those with rural constituencies, including the hon. Member for Berwickshire, Roxburgh and Selkirk. I think that Link should take into account his point about the different rules for what is rural and what is urban. I am running very low on time, and I am conscious that the hon. Member for South West Hertfordshire should be allowed a brief wind-up. I promise to respond in writing to some of the questions asked about the Post Office in the debate.

17:29:00

I thank the Economic Secretary to the Treasury for that response. She will have heard the sentiment around the Chamber that all of us want to see more banking hubs throughout the country. Although the target of 350 may once have been ambitious, that does not mean we should not have more, especially if we already have 230 in place. I thank hon. and right hon. Members for their contributions and for making my first Westminster Hall debate so enjoyable. Question put and agreed to. Resolved, That this House has considered access to banking hubs in Hertfordshire.

17:30:00