Lloyds to Close 55 More Bank Branches by 2026

Lloyds plans to shut 55 branches, totaling 292 closures, affecting Halifax and Bank of Scotland. What this means for customers.

Lloyds Banking Group has announced its intention to close an additional 55 bank branches, thereby elevating the cumulative total of closures projected by 2026 to nearly 300. This latest wave of branch shutdowns is scheduled to commence in the forthcoming year and will encompass Halifax, Bank of Scotland, and Lloyds-branded locations, spanning a diverse array of locales from Surbiton to Port Talbot, Burgess Hill, and Didcot.

This strategic maneuver signifies that Lloyds Banking Group will have effectively shuttered 292 branches within the two-year period from January 2024 to December 2025. This initiative is part of a broader corporate restructuring aimed at cost reduction and a pronounced shift towards digital banking solutions. The bank has reported a staggering 55% decline in transactions across the 55 branches earmarked for closure over the past five years, juxtaposed with a notable increase in the utilization of its mobile banking application.

Upon the completion of all previously announced closures, Lloyds will retain a network comprising 892 branches, which includes 447 Lloyds Bank sites, 341 Halifax-branded branches, and 104 Bank of Scotland locations. In light of new regulations set to take effect next week, banks and building societies will be mandated to ensure that communities affected by branch closures have alternative means to access cash. In response, Lloyds has assured that all communities impacted by the 55 branch closures are situated within reasonable proximity to services such as the Post Office or free-to-use ATMs.

Interestingly, these closures are not anticipated to precipitate any job losses, as staff members will be offered alternative roles, including positions at other branches. A significant number of employees are also opting for remote work arrangements in online or telephone banking roles, as reported by the Accord union, which represents Lloyds staff.

In a collaborative effort to mitigate the impact of branch closures, UK retail bank executives from institutions such as NatWest, HSBC, Lloyds, and Santander convened with City minister Tulip Siddiq. They reached an agreement to establish 350 banking hubs by the conclusion of the parliamentary term. These hubs will facilitate customer transactions, allowing individuals to deposit cash, pay in cheques, and engage in face-to-face consultations with community bankers, irrespective of their primary banking institution. Furthermore, there are considerations for incorporating printing facilities within these hubs, enabling customers to print statements or documents as needed.