MP welcomes Lloyds U-turn over Post Office cheque deposits

Nation.Cymru staff

A Welsh MP has welcomed a move by Lloyds Banking Group to restore cheque deposit services at Post Office branches after backing a cross-party campaign calling on the bank to reverse its decision.

Ben Lake, the Plaid Cymru MP for Ceredigion Preseli, was among 121 MPs from across the House of Commons who signed a letter urging Lloyds chief executive Charlie Nunn to reinstate the service.

The bank has now said it has asked the Post Office to continue accepting cheque deposits into Lloyds accounts until the end of 2030, subject to the two organisations agreeing commercial terms.

Lloyds had been the only major UK bank not allowing customers to deposit cheques through Post Office branches and Banking Hubs after withdrawing the service earlier this year.

The decision prompted concern from MPs and campaigners, who argued it disproportionately affected older people, disabled customers, those without access to digital banking, as well as charities, community groups and small businesses that still rely on cheque payments.

In its response to MPs, Lloyds said it had reflected on feedback from customers and parliamentarians.

The bank said extending cheque deposit services until 2030 would help ensure customers “who may need more time are supported”, adding that for some people, particularly older and vulnerable customers, “familiarity and reassurance remain important”.

Mr Lake said the announcement was an important step but urged Lloyds and the Post Office to reach a final agreement.

He said: “I welcome Lloyds’ decision to seek the restoration of cheque deposit services at Post Office branches.

“Access to local Post Offices is essential for people across Ceredigion Preseli, as it keeps face-to-face banking available for residents, small businesses and community groups.

“It is a matter of fairness that people – often elderly, vulnerable or digitally excluded – who rely on cheques should not be forced to struggle with digital services, sending cheques through the post, or having to travel miles when other major banks allow deposits through Post Offices and Banking Hubs.

“Whilst I acknowledge that Lloyds have moved in the right direction, they now need a concrete agreement so that customers are able to have the same access to financial services that other banks offer through the Post Office.

“Everyone should be afforded access to the full range of basic banking services.”

The campaign attracted support from MPs across the political spectrum, including Shadow Chancellor Mel Stride, Liberal Democrat Treasury spokesperson Daisy Cooper, Green MP Adrian Ramsey, former Labour leader Jeremy Corbyn, Labour MP Graham Stringer, SNP MP Dave Doogan.

While customers have continued to be able to withdraw and deposit cash at Post Office branches, the loss of cheque deposit facilities had left some customers without a convenient way of paying cheques into their accounts locally.