Government secures industry commitment to 350 banking hubs

The Government secured a commitment from industry in September 2024 to ensure the rollout of 350 banking hubs by the end of this parliament, according to its response to the Treasury Committee's report on the acceptance of cash¹. The response, from Economic Secretary to the Treasury Emma Reynolds MP, was received on 27 June 2025 and published as a special report on 12 July 2025¹. The Committee's original report, Acceptance of cash (HC 324), was published on 30 April 2025¹.

The commitment sits alongside the Financial Conduct Authority's access to cash rules, which came into force on September 18th 2024 under powers granted by the Financial Services and Markets Act 2023¹. The Government says early evidence shows the regime is having a positive impact: since it came into force, LINK, the industry body responsible for cash access assessment, has recommended 77 banking hubs, including 25 that would not have qualified or were previously rejected under the old regime, plus 21 deposit solutions and service improvements in 15 locations¹. There are now over 70 temporary hubs open while permanent sites are completed¹.

The response cites figures on how hubs are used. Data from the banking hubs pilot scheme showed 92% of businesses who used the hubs were more likely to keep accepting cash, and 80% of deposits were from local businesses¹. A 2024 Cash Access UK social impact report found 80% of businesses had used their local hub since it opened, 53% of firms said they saved time going to their nearest hub rather than travelling further to a bank branch, and 47% said the percentage of cash spent at their business increased since a hub opened¹.

On wholesale cash, HM Treasury recognised twelve firms as "market significant" for the provision of wholesale cash services on 5 June, bringing them under the Bank of England's oversight regime with effect from 12 June¹.

The response also addresses the cost of accepting different payment methods. It cites the 2024 British Retail Consortium Payment Survey, which calculated the cost of processing cash transactions as £0.0258 per transaction, while the average cost of processing a debit card payment was 0.27% of the transaction value¹. The Government says the cost of accepting specific payment methods will be unique to each firm and depend on factors including size and the services required¹.

Why it matters for households

The 350-hub commitment and the FCA rules are aimed at people and businesses that depend on cash. The Government says cash continues to play an integral role in the UK's payments ecosystem and that it recognises its importance for millions of people, including those in vulnerable groups or who face difficulties accessing alternative payment methods¹. For households in areas that have lost bank branches, a hub is the physical point where cash can be withdrawn and deposited, and where businesses can deposit takings. The response states that businesses need access to cash deposit services in order to keep accepting cash, and that this in turn supports people's ability to transact in cash¹.

The figures cited suggest hubs are used heavily by local businesses: 80% of deposits were from local businesses, and 80% of businesses had used their local hub since it opened¹. The Government also points to financial inclusion work, noting that in 2025 the FCA reported digitally excluded individuals are the most likely to be unbanked, and that it estimates 1.6 million people in the UK are currently living offline, with around a quarter of the population having the lowest level of digital capability¹. A Financial Inclusion Strategy is due to be published later in 2025, alongside a supporting committee of consumer and industry representatives¹.

What happens next

The FCA has committed to undertaking and publishing a formal review of the access to cash regime's effectiveness in due course, and intends to confirm its timings in writing to the Committee in autumn 2025¹. The Government says it will consult on the details of transferring responsibilities from the Payment Systems Regulator to the FCA and legislate as soon as possible¹. The Financial Inclusion Strategy is due later in 2025¹. The response does not give a date by which the 350 hubs must be open beyond "the end of this parliament"¹.