Lloyds, Halifax and Bank of Scotland to AXE ‘vital’ service for millions of customers this year
LLOYDS Banking Group is axing a lifeline service used by thousands of its customers every day.
Millions of current account holders frequently turn to their local Post Office for essential banking tasks, such as depositing cash into their accounts or paying in cheques.
From December 31, Lloyds Banking Group will withdraw this service for all customers
It comes after thousands of bank branches have closed over the past few years, meaning the Post Office has become a vital way of accessing everyday banking.
However, customers of Lloyds Bank, Halifax and Bank of Scotland will soon lose the ability to deposit their cheques at any of the 11,500 Post Office branches nationwide.
From December 31 this year, Lloyds Banking Group will withdraw this service for all customers.
This means customers will need to travel further afield to visit their nearest bank branch or rely on mobile banking to deposit their cheques.
Consumer rights expert Martyn James said: “Being able to deposit cheques simply and easily is a vital lifeline.
“With millions of cheques still issued each year, and older people relying on them far more than other age groups, this group stands to lose the most from these changes.”
The change is part of a push by Lloyds Banking Group to get more of its customers using its mobile app.
It recently highlighted the development of updated mobile apps for Halifax and Bank of Scotland, which form part of the group.
A Lloyds Banking Group spokesperson told The Sun: “Most customers use our app as the easiest way to pay in a cheque, by taking a photo on their phone and letting us take care of the rest.
“Very few customers are choosing to deposit cheques in at the Post Office.”
It is understood the bank will offer new support for those affected including a new freepost cheque deposit service.
The majority of the nation’s major high street banking brands still permit customers to deposit their cheques at local Post Office branches.
These include Barclays, HSBC, NatWest, and Santander.
However, several other high street names have discontinued this service, or never offered it in the first place.
Building society Nationwide also does not allow customers to deposit cheques into current accounts via their local Post Office.
The same goes for challenger banks including Monzo and Starling.
How many branches has Lloyds Banking group closed?
The huge change by Lloyds comes after a raft of branch closures over the past couple of years, making it increasingly difficult for customers to access basic banking.
Since June 2022, Lloyds Banking Group has shut 533 bank branches across its three brands.
This comprises 267 Lloyds Bank closures, 197 Halifax branch closures, and 69 Bank of Scotland closures.
A further 191 sites will close between March 10, 2025 and March 12, 2026.
In January, the banking giant also announced plans to enable customers to access services at any branch regardless of which brand they bank with.
For example, this means that a Lloyds Bank customer will be able to access the same services when visiting Halifax and Bank of Scotland branches, and vice versa.
What to do if your local bank is set to close
There are still a number of ways people can access basic banking services without having to venture to another town with a branch.
You can use one of the Post Office’s 11,684 branches to perform most basic banking tasks — but not to open new bank accounts or take personal loans and mortgages.
You can find your nearest Post Office branch by visiting postoffice.co.uk/branch-finder.
Many banks also offer a mobile banking service, where they bring a bus to your area offering services you can usually get at a physical branch.
Other banks use buildings such as village halls or libraries to offer mobile banking services.
It’s worth contacting your bank to see what mobile services they have available, and when they might next be in your area.
New super ATMs are being rolled out across the UK where branch closures have left residents unable to access essential banking services.
These ATMs will allow customers to withdraw funds, access their balance, change PIN numbers and deposit cash.
Bank of Scotland, Barclays, Halifax, Lloyds, NatWest, Royal Bank of Scotland and Ulster Bank are already signed up to allow deposits, at the super ATMs.
Banking hubs are also being opened across the UK with 250 set to be available by the end of 2025.
These sites typically feature a counter service operated by the Post Office as standard, enabling customers to conduct routine banking transactions conveniently.
Each hub also has a private area where customers can consult with staff representing their banks for more complex matters.
What services do banking hubs offer?
BANKING hubs offer a range of services to bridge the gap left by the closure of local branches.
Operated by the Post Office, these hubs allow customers to perform routine transactions such as deposits, withdrawals, and balance enquiries.
Each hub also features private booths where customers can discuss more complex banking matters with staff from their respective banks.
Staff from different banks are available on a rotational basis, ensuring that customers have access to a wide range of banking services throughout the week.
Additionally, customers can receive advice and support on various financial products and services, including loans, mortgages, and savings accounts.
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