MP calls on Lloyds to reverse plan to stop accepting cheques at banking hubs

Sir Edward Leigh, Conservative Member of Parliament for the Gainsborough constituency, has formally objected to Lloyds Banking Group’s decision to stop allowing customers to pay cheques into their accounts via banking hubs.

In a letter to the group’s chief executive, the MP highlighted the significant role played by the Market Rasen Banking Hub, which serves the town and its wide rural catchment. Many local residents and businesses, Sir Edward said, rely on the hub for essential banking services, including cheque deposits.

The hub was set up by Cash Access UK in response to the closure of banks in the town and is operated by the Post Office.

The MP expressed particular concern for elderly and vulnerable constituents, many of whom remain dependent on cheques for everyday financial transactions. He has asked Lloyds Banking Group to set out what assessment it has made of the impact the withdrawal of this service will have on these groups.

The MP also noted reports that banking hub operators had proposed mitigating measures such as providing self-addressed envelopes for cheque deposits but that Lloyds Banking Group had declined to adopt this option.

Emphasising the importance of community banking in rural areas following widespread branch closures, Sir Edward stressed that Lloyds is the only major banking group withdrawing cheque deposit services from hubs, a move he believes will cause unnecessary difficulty for local people.

He has urged Lloyds Banking Group to reverse the decision and work constructively with banking hub operators to ensure continued provision of accessible services for all customers.

A Lloyds spokesperson stated that, according to industry figures, cheques have been in long-term decline and accounted for only 0.2 per cent of all UK payments in 2023, saying: “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.”

They stated that they have let customers know they have updated the terms and conditions on some accounts, and from December 31, 2025 customers can no longer pay cheques in at the Post Office including those within Banking Hubs.

“Customers continue to be able to pay in cheques using our app, through an immediate deposit machine or at a branch counter.”

They explained: “Fewer than one in 15 customers who have paid a cheque in, have used the Post Office to do so in the last year.

“Two thirds of the customers who deposited a cheque at the Post Office last year are already using our app or other branches.”

But they added: “For those customers who aren't using other channels, we'll be offering additional support including a new, freepost cheque deposit service. We will be contacting relevant customers nearer the time to give them more information on this service.”