Britain’s banking crisis laid bare: More than 6,000 branches have closed in last nine years with three out of every five shutting for good

The number of UK bank branches shutting their doors over the past nine years will pass the 6,000 mark today amid an ‘avalanche’ of closures, a study has revealed.

Consumer group Which? said eight Barclays branches were closing for good over the coming hours, taking the national overall total by the end of today to 6,005.

This equates to over 60 per cent of the UK branch network since it began tracking closures in 2015. Experts said the milestone highlights the impact on high streets and how replacement services are needed for millions of people who rely on them.

By the end of this year, 33 parliamentary constituencies will be without a single bank branch – such as Bolton West, York Outer, Newport East and Reading West. Others include Barnsley East, Warrington North, Glasgow North East and Swansea East.

While the rate of closures had initially appeared to slow down since it reached a peak in 2017, the researchers said that in ‘recent years there has been a troubling surge’.

Bank bosses have been accused of ‘engaging in a race to close branches’ after the Government announced plans in 2020 for laws to protect access to cash, which could make it harder to close a branch if alternative cash provision is lacking. 

The eight Barclays closures today are at Alperton in North London; Streatham in South London; Andover in Hampshire; Bangor in County Down; Bracknell in Berkshire; Hornchurch in Essex; Inverness in the Highlands; and Liverpool.

Barclays has closed 1,216 branches; while NatWest Group, which comprises NatWest, Royal Bank of Scotland and Ulster Bank, has closed 1,360 branches, Which? said.

Lloyds Banking Group, made up of Lloyds Bank, Halifax and Bank of Scotland, has shut 1,146 sites, the consumer group added.

It also said 200 closures by various banks are already scheduled for the rest of this year.

These include 50 from Natwest, 43 from Lloyds, 28 from TSB, 26 from Halifax, 20 from RBS, 14 from Barclays, 14 from Bank of Scotland, four Danske branches and one Ulster Bank branch.

Currently, 24 more bank branch closures have been scheduled for 2025, although more are expected to be announced later this year and next, the group added.

While millions of consumers have made the switch to banking digitally, there remains a significant number of people who are not yet ready or willing to make that jump, underscoring the need for accessible alternatives, Which? said.

However, there are various initiatives to help plug gaps in the cash access network as bank branches close.

The 50th banking hub was recently opened. Banking hubs allow banks to share facilities, and they have a counter service operated by the Post Office, allowing customers to conduct routine banking transactions.

But Which? said the ‘rollout is progressing too slowly’, adding that this total was less than half of the recommended 130 banking hub locations to have opened so far.

The Post Office also recently reported that cash transactions at its branches totalled a record £3.48billion in April. 

The Post Office has an agreement with many banks, allowing their customers to carry out everyday banking over its counters.

With a general election looming, Which? said it believes that the next government should commit to delivering at least 200 shared banking hubs in the first two years following the election.

It added that as bank branch closures are likely to continue in the coming years, any target may need to be revised upwards to keep pace.

Sam Richardson, deputy editor of Which? Money, said: ‘This milestone of more than 6,000 bank branch closures in just nine years underscores the seismic shift that has taken place in terms of our banking habits and the character of the British high street.

‘While some may hardly notice the closure of their local branch as they seamlessly switch to online banking, for others reliant on face-to-face services, the impact can be disastrous.

‘It’s not about halting closures altogether, but ensuring that essential banking services remain accessible to those who still rely on them.’

Which? also pointed out that some banks still insist on customers coming into the branch to carry out services such as registering power of attorney.

It added that several high street banks have fared poorly when registering power of attorney, with waiting for in-branch appointments potentially adding delays to the process – and banking hubs not always offering such services.

A Barclays spokesperson said: ‘As visits to branches continue to fall, we need to adapt to provide the best service for all our customers.

‘Where levels of demand don’t support a branch, we maintain an in-person presence though our Barclays Local network, live in over 350 locations, based in libraries, town halls, mobile vans and our banking pods.

‘We also support access to cash with our cashback-without-purchase service, 24-hour deposit-taking ATMs and by working alongside the Post Office and Cash Access UK.’

A spokesperson for trade association UK Finance said: ‘An ever-increasing number of people are using telephone, mobile and internet banking and fewer people are visiting bank branches on a regular basis. 

‘Balancing this change in the way we bank means firms have to make difficult decisions about maintaining their branches.

‘The industry has invested heavily in alternative services, including thousands of post offices where people can do a lot of their day-to-day banking.

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‘Alongside this, the industry is working to roll out shared banking hubs to bring together different firms to support their customers.

‘There is also significant ongoing investment to ensure access to cash, including free ATMs and cashback without purchase. If you are concerned about your local bank branch closing, please contact them and they will help you find the best alternative for your needs.’

Stephen Noakes, retail director at Nationwide said: ‘Which? has helpfully put the spotlight on branches.

‘Our research shows nearly three-quarters of consumers of all ages are concerned about the rate of closures, with half of 16 to 24 (year-olds) left frustrated after finding their local branch closed.

‘Branches are valued for everyday banking but also for important moments like scam worries and transferring a large amount of money. That’s why we have promised that everywhere we have a branch today we will remain until at least 2028.’