Halifax, a subsidiary of Lloyds Banking Group, is set to close a total of 100 branches across the UK by the end of 2025, continuing a wider trend of banking sector contraction of physical locations in favour of digital services. The majority of these closures have already taken place, with the next wave involving branches in Crewe, Stretford (Manchester), Sittingbourne, and Mold closing between October 14 and 16. In total, 54 closures have been confirmed, while a further 46 locations previously closed have undergone re-assessment by LINK, the organisation tasked with evaluating local access to cash services. LINK's reviews typically result in recommendations for maintaining some cash access through banking hubs or ATMs, with any new services expected to be in place within 12 weeks after closure, assuming no existing coverage.

This programme forms part of Lloyds Banking Group's broader initiative to close 136 branches nationwide between May 2025 and March 2026. This includes 61 Lloyds branches, 61 Halifax sites, and 14 Bank of Scotland branches. These decisions are driven by a sharp decline in in-branch transactions — with 10 million fewer transactions recorded in 2024 compared to the previous year — as more than 21 million customers increasingly prefer mobile and online banking options. The group has sought to reassure customers that no job losses will result from these closures; affected employees are being offered redeployment opportunities within the company.

Despite closures, Lloyds Banking Group emphasises that physical banking services remain accessible through alternative channels. Customers can visit any Lloyds, Halifax, or Bank of Scotland branch, utilise shared Banking Hubs, or conduct everyday banking at Post Office branches. Additionally, over 30,000 PayPoint locations allow cash deposits, offering some mitigation against the reduced branch footprint. These efforts reflect a broader shift within the UK banking sector, with other major banks such as NatWest, Barclays, Santander, and HSBC also reducing their number of branches amid changing consumer behaviours.

Regulators are increasingly responsive to concerns about the consequences of branch closures, particularly for vulnerable and rural communities reliant on cash access. From September 2024, new Financial Conduct Authority (FCA) rules require banks to delay branch closures until alternative free cash access is confirmed locally. This includes deployment of free ATMs or banking hubs, often based in post offices, to ensure communities are not left without essential financial services. Although 31 banking hubs have been opened in previously underserved towns with another 70 planned, there is widespread criticism that these measures have not kept pace with the scale of branch shutdowns.

Andrew Bailey, Governor of the Bank of England, has made public appeals amid growing concern about the social impact of these closures. The government faces pressure to strengthen regulatory powers to enforce more extensive provision of banking hubs and alternative services, safeguarding access to cash for millions. Labour has pledged to accelerate the opening of additional banking hubs over the next five years to tackle the gaps left by branch withdrawals.

In summary, Halifax's branch closures exemplify a significant transformation in UK retail banking driven by digital adoption, regulatory changes, and evolving consumer preferences. While customers benefit from more convenient digital tools and shared access points such as banking hubs and the Post Office, the ongoing reduction of physical branches continues to raise important questions about financial inclusion and equitable access for all communities.

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Source: Noah Wire Services