Customers who still rely on cheque payments could soon be able to deposit them locally again after Lloyds Banking Group announced plans to seek the return of cheque deposit services at Post Office branches and Banking Hubs.
The move follows concerns raised by customers and MPs who said the lack of local cheque deposit facilities was causing difficulties for some people, including older residents, digitally excluded customers, small businesses, charities and community groups.
The change could benefit Lloyds customers who use the Banking Hub at Plympton and Post Office branches across South West Devon.
South West Devon MP Rebecca Smith was among 121 MPs from across Parliament who signed a cross-party letter asking Lloyds to reconsider its position on cheque deposits.
Following the campaign, Lloyds confirmed it had asked the Post Office to accept cheque deposits into Lloyds accounts at Post Offices and Banking Hubs until the end of 2030.
The arrangement is subject to Lloyds and the Post Office agreeing commercial terms.Rebecca Smith said the move would help customers who still depend on local access to banking services.
“The Banking Hub at Plympton and local Post Offices are important for people across South West Devon. They help keep face-to-face banking available for residents, small businesses, charities and community groups,” she said.
“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.”
Banking Hubs have been introduced in communities where traditional bank branches have closed, helping to maintain access to face-to-face banking for residents and local organisations.
Supporters of the change say restoring cheque deposit facilities will provide greater choice for customers who are not able to, or do not wish to, rely solely on digital banking.
Lloyds said it had listened to feedback from customers and MPs and that extending cheque deposit services until 2030 would provide a transition period for those who need additional support.
Graham Stuart MP, who coordinated the cross-party letter, said the change was a positive step for customers who had raised concerns about losing access to cheque deposits.
The next step will be for Lloyds and the Post Office to finalise the agreement before the service can be restored.
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