Banking giant cites shift to digital services as 21 million customers use apps whilst communities face ‘alarming’ rate of closures sweeping Britain’s high streets
Lloyds Banking Group has confirmed plans to close another 49 branches across the UK in 2026, dealing a fresh blow to customers and communities already reeling from what consumer champions describe as an “alarming” wave of bank closures that has seen more than 6,000 branches disappear since 2015.
The banking giant, which operates Lloyds Bank, Halifax and Bank of Scotland, announced the closures would take place between January and October 2026, with 26 Lloyds branches, 10 Halifax sites and 13 Bank of Scotland locations earmarked for shutdown.
The move comes as research by consumer champion Which? reveals the UK has already lost more than 60% of its bank branch network over the past decade, with closures running at an average of 53 branches per month since tracking began in 2015.
Digital Banking Drives Closures
A Lloyds Banking Group spokesperson defended the decision, stating: “The way people are banking has changed, with over 21 million customers choosing our apps to manage their money. We’re providing more choice than ever before, bringing together the best in digital convenience with our people.”
The spokesperson added that customers could still access services through “any Lloyds, Halifax or Bank of Scotland branch, the Post Office or Banking Hubs for their everyday banking, and deposit cash at over 30,000 PayPoint locations.
Following this latest round of closures, Lloyds Banking Group will be left operating just 705 branches nationwide – 359 Lloyds, 269 Halifax and 77 Bank of Scotland sites – a stark contrast to the more than 2,200 branches it operated a decade ago.
Communities Bear the Brunt
The closures will particularly impact smaller towns and communities across England, Scotland and Wales, with some areas facing the loss of their last remaining bank branch. Among the affected locations are historic market towns like Stamford, coastal communities including Deal and Penzance, and Scottish towns such as Dingwall and Gairloch.
In response to the closures, cash access network LINK has recommended banking hubs for eleven of the affected locations: Buxton, Camborne, Chepstow, Deal, Gorseinon, Grangemouth, Harborne, Hawick, Ryde, Stamford and Southampton Totton.
Banking hubs offer shared spaces where customers from any bank can carry out basic transactions through Post Office staff, with representatives from individual banks available on rotating days for more complex matters.
Full List of Closures
Lloyds Bank branches closing:
- January 2026: Gillingham (Dorset), Mitcham, Totnes (8th); Bideford, Fleet (13th); Chester-le-Street, Ivybridge, New Addington (14th); Ammanford (12th); Havant, Lewes, Southampton Totton (19th); Alfreton (19th); Stamford, Swadlincote (20th); Penzance, Petersfield, Ryde, Southampton Hedge End (21st); Deal (22nd); Hedon (28th)
- March 2026: Okehampton (25th)
- October 2026: Camborne, Chepstow (7th); Harborne (8th); Gorseinon (12th)
Halifax branches closing:
- January 2026: Middleton (8th); Yeovil (12th); Havant, Wandsworth (15th); Seaford (19th); Buxton (20th); Deal, Hastings (22nd); Skipton (26th)
- October 2026: Camborne (7th)
Bank of Scotland branches closing:
- January 2026: Larkhall (8th); Bellshill, Glasgow Anniesland, Tain (12th); Erskine (13th); Gairloch (15th); Nairn, St Andrews (20th); Castle Douglas (22nd)
- March 2026: Dingwall, Largs (25th)
- October 2026: Hawick (7th); Grangemouth (8th)
National Closure Crisis
The Lloyds announcement adds to what Which? describes as a crisis in UK banking access. Since 2015, more than 6,500 bank branches have closed across Britain, with Barclays leading individual banks having shut 1,227 branches, whilst NatWest Group (including Royal Bank of Scotland and Ulster Bank) has closed the most as a banking group with 1,483 closures.
Lloyds Banking Group itself has shut more than 1,400 branches across its three brands since 2015. The closure rate peaked in 2017 when 867 branches shut at a rate of more than 70 per month, though the pace has remained consistently high with 410 closures in 2024 alone.
By the end of 2024, thirty-three parliamentary constituencies with a combined population of more than three million were left without a single bank branch. The situation has prompted the Financial Conduct Authority to introduce new rules requiring banks to ensure communities maintain access to cash services.
Staff Reassurances Amid Digital Push
Lloyds Banking Group confirmed that employees working at affected branches would be offered roles at other branches or in different parts of the business, avoiding compulsory redundancies.
The bank emphasised that mobile banking services would allow customers to “access their money 24/7, apply for finance, manage their subscriptions and check their credit score every day a year.”
However, critics argue that not all customers can or want to embrace digital banking. Andrew Beverly, Campaign Director at Campaign for Cash, told consumer advocates: “It’s very disappointing that Lloyds Banking Group continue to whittle down their branch numbers. Not everyone can or indeed wants to bank online, and this is hollowing out communities up and down the country, with the greatest impact in rural areas.”
Banking Hubs: Too Little, Too Late?
The Government has committed to delivering 350 banking hubs over the course of this Parliament, with LINK having recommended 244 locations so far. Currently, 186 hubs are operational across the UK, operated by the Post Office in partnership with Cash Access UK.
John Howells, chief executive of LINK, said: “Banking hubs continue to provide a key service on the high street. Millions still rely on cash day in, day out, and we’re committed to keeping cash on the high street.”
Yet consumer groups warn the rollout is happening too slowly to offset the rapid pace of closures. Which? has called for the next government to commit to delivering at least 200 shared banking hubs in the first two years following any election, warning that targets may need revising upward to keep pace with ongoing closures.
Digital Divide Deepens
Research shows that between 2020 and 2024, the proportion of consumers using digital banking services rose by 33% to reach 59% of the population. The rise of digital challenger banks like Revolut and Monzo has further accelerated the shift away from traditional banking.
UK Finance personal banking director Peter Tyler noted: “The way that we bank has been changing for some time, with a shift to digital services which is driven by customer demand. The variety of ways that customers can access banking services has grown in recent years.”
Yet concerns remain about vulnerable customers, the elderly, and those in rural areas who struggle with or lack access to digital services. A Nationwide Building Society study found that even among young people aged 16 to 24, half reported frustration at finding their local branch closed when they needed it.
As communities across Britain brace for another wave of closures, the debate over balancing digital innovation with maintaining essential face-to-face banking services shows no signs of resolution, leaving many wondering whether the traditional bank branch will soon become a relic of the past.
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Image Credit:
Union Bank of Scotland HQ building — photo by Alf van Beem, released into the public domain.
