Commons Sense

House of Commons · Westminster Hall

Financial Inclusion: Rural Areas

11 December 2024 · 11 other contributors · 4,218 words

Opened by Anna Sabine Lib Dem Frome and East Somerset

Responding minister: Emma Hardy

Benefits & WelfareAgriculture & Rural Affairs

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Anna Sabine raised concerns about financial inclusion: rural areas in Westminster Hall. A government minister responded.

Key points

  • MP concerned about challenges of financial inclusion in rural areas, focusing on access to cash and face-to-face banking
  • Issues highlighted include bank branch closures affecting low-income earners and elderly people
  • MP urges government to make Link regulations more flexible and supports long-term provision of banking hubs and post office services

Key requests to Government

The MP urges the Government to make regulations for Link more flexible, allowing it to work on a case-by-case basis and consider geographical and societal barriers. She also requests reassurance about long-term provision of banking hubs and calls for the post office to be supported as a vital service in rural areas.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Anna Sabine Lib Dem Frome and East Somerset

The MP is concerned about the challenges of financial inclusion in rural areas, particularly regarding access to cash and face-to-face banking. She highlighted that her constituency faces issues such as bank branch closures, which affect vulnerable groups like low-income earners and elderly people who rely on landlines for communication and may not have good broadband or mobile signals. The MP noted that 93% of people live within a mile of an ATM but pointed out that this statistic does not account for physical barriers in rural areas.

Other contributors (11)
  • Adam Dance Lib Dem Yeovil

    Banking hubs are crucial for financial inclusion but the Government's plan of 350 hubs over five years is insufficient. Ilminster has been denied a hub by Link's reassessment.

  • Alistair Carmichael Lib Dem Orkney and Shetland

    Communities in Orkney and Shetland need access to a bureau de change due to tourism, which requires full post office services for currency exchange.

  • Christopher Bloore Lab Redditch

    Loss of bus routes is a major problem for older residents, leaving some with only one connection to banks. The Government's extra funding should help protect these vital routes.

  • Clive Jones Lib Dem Wokingham

    In Wokingham, legislation is needed to require Link to take into account the protection of face-to-face banking services in their decision-making process for banking hubs.

  • David Chadwick Lib Dem Brecon, Radnor and Cwm Tawe

    Large banks are leaving high streets at an alarming rate. Ystradgynlais, despite Lloyds Bank's profits, has been denied a banking hub request. The community should be prioritised in expanding banking hubs. Requests clarification on whether Link is covered by the growth duty that mandates regulators to consider economic impacts of their actions.

  • Jim Shannon DUP Strangford

    In Strangford constituency, 11 banks have closed. This leaves residents vulnerable to unregulated moneylending and poor financial advice. The massive profits of big banks mean ordinary people are suffering.

  • Joe Morris Lab Hexham

    The need for a banking hub in Haltwhistle is pressing due to lost banking services and inadequate Post Office van visits. Rural areas should be considered on loose criteria for economic growth.

  • John Smith Con Somerton and Frome

    The MP agrees with the concerns raised about financial inclusion in rural areas, highlighting issues such as the closure of bank branches and the importance of face-to-face contact in banking. He also raises the issue of bus routes being critical to rural communities.

  • Matt Rodda Lab Reading Central

    In Reading Central, Caversham residents struggle due to the distance to banking services. Accessibility should be a key consideration for banking service locations. Stresses the importance for disabled, vulnerable individuals and small businesses to have access to in-person banking advice from qualified staff.

  • Richard Foord Lib Dem Honiton and Sidmouth

    Residents value paper statements but cannot get them at new banking hubs despite their importance. Two new hubs in the area provide limited access to printed statements.

  • Steffan Aquarone Lib Dem North Norfolk

    Banking hubs are essential for small businesses and residents in North Norfolk, yet the decision to place a cash machine in a fried chicken shop has frustrated local people.

Government Response

Emma Hardy

Congratulated the hon. Member for securing her first Westminster Hall debate on financial inclusion in rural areas, highlighted the importance of ensuring access to cash and face-to-face banking services for vulnerable individuals, noted that over 98% of people in rural areas are within three miles of free-to-use withdrawal facilities, discussed the regulatory rules introduced by the Financial Conduct Authority to protect access to cash, mentioned the roll-out of 350 banking hubs across the UK to provide critical banking services, and outlined a financial inclusion strategy supported by a committee comprising consumer groups and the financial sector. The strategy will focus on key policy areas such as access to banking, insurance, and affordable credit, aiming to address significant challenges including a quarter of adults with less than £100 in savings, over a million unbanked adults, a reported £2 billion of unmet need for credit, and over 8 million people struggling with financial debt. The committee will consider barriers to inclusion and solutions to address them, and the strategy will be published next year after extensive work by the Financial Inclusion Committee.

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