New debanking rules from government: Positive Money response

London, 28 April 2025 - Positive Money responds to the announcement from HM Treasury this morning that banks will be forced to give an extra thirty days notice before debanking customers from April 2026. Banks will also need to provide a reason for their actions in writing, and customers will have longer to challenge their decision.

Simon Youel, Head of Policy and Advocacy at Positive Money, said: 

“Debanking has been affecting both individuals and small businesses up and down the country for years - it’s a shame it took this happening to one extremely wealthy individual for policymakers to do something about the problem.

“Forcing banks to provide a reason for the closure, and giving customers more time to appeal, should go some way towards reducing the stress this practice puts on people. 

“This should be the first  in a long line of measures to improve financial inclusion in the UK, such as measures to make sure businesses accept cash, and to increase the presence of banking hubs in areas that have been left without any branches.”

Notes: 

• The government’s full announcement can be found here: https://www.gov.uk/government/news/millions-of-people-and-businesses-protected-against-debanking 

About Positive Money:

Positive Money is an international research and campaign organisation working to redesign our economic system for social justice and a liveable planet. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of supporters. Find out more: www.positivemoney.org