Lloyd’s Bank’s u-turn on accepting deposit cheques in person at post offices and banking hubs has been welcomed by the MP for Louth and Horncastle.

Victoria Atkins said the move was a “major breakthrough” after Lloyds Banking Group agreed to seek the restoration of services until the end of 2030.

Atkins was one of 121 MPs from across the House of Commons who signed a cross-party letter, coordinated by Graham Stuart MP, calling on Lloyds to think again.

The letter was sent to Chief Executive Charlie Nunn after residents and MPs warned that older, vulnerable and digitally-excluded customers were being left without access to a basic banking service still offered by other major banks.

Lloyds Bank in Horncastle High Street (Google). Inset: MP Victoria Atkins

placeholder image — Lloyds Bank in Horncastle High Street (Google). Inset: MP Victoria Atkins

Victoria Atkins said: "This is a welcome step forward for customers who still need to deposit cheques locally. Banking Hubs and Post Offices are important for people across Louth and Horncastle. They help keep face-to-face banking available for residents, small businesses, charities and community groups.

"But we need to make sure everyone can still access the full range of basic banking services. That includes people who still rely on cheques, particularly older residents.”

As previously reported, Lloyds announced it will close its branch in Horncastle’s High Street in August this year. The town still has a Post Office.

Lloyds said cheques now account for just 0.1% of consumer payments overall, but also said that in 2025 around 730,000 cheques were paid into Lloyds accounts at the Post Office or a Banking Hub by personal customers, and 277,000 by business customers.

Lloyd's Bank in Louth. Image: Google Maps

The bank said it had reflected on feedback from customers and MPs and had asked the Post Office to accept cheque deposits into Lloyds accounts in Post Offices and Banking Hubs until the end of 2030. The change is subject to the Post Office agreeing acceptable commercial terms. It also said it understood that for some customers, particularly those who are older or vulnerable, familiarity and reassurance remain important.

Victoria Atkins added: “People should not be forced to struggle with an app, send cheques through the post, or travel miles when other major banks allow cheque deposits through Post Offices and Banking Hubs.

"Lloyds has now moved in the right direction. Lloyds and the Post Office now need to get the agreement signed so customers can deposit cheques locally again."