Starting Monday, 28 April, some of the UK’s largest banks—including Lloyds, HSBC, NatWest, and Nationwide—are required to give customers a minimum of 90 days’ notice before closing their accounts. This is an increase from the previous two-month notice period.
Introduced by the Labour Party government in 2025, the new regulations also mandate that banks provide written explanations for account closures. This transparency allows customers to understand the reasons behind the decision and gives them greater opportunity to challenge it through avenues such as the Financial Ombudsman Service.
The changes are designed to protect individuals and small businesses from the sudden loss of banking access, a situation that has previously left some customers scrambling to find alternative accounts at short notice. While urgent account closures remain permissible in cases related to financial crime or compliance, the overall aim is to enhance security and fairness in banking services.
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Labour’s economic secretary to the Treasury, Emma Reynolds, emphasized the importance of these protections: “Delivering economic security for working people is at the heart of our Plan for Change. Strengthening safeguards against debanking will help ensure people and businesses maintain access to essential banking services.”
These new rules provide customers with more time to respond to account closures and secure alternative banking arrangements, especially benefiting small businesses that have faced abrupt account shutdowns in the past.
Ms. Reynolds added, “Under the new rules, customers will receive more notice of account closures, be entitled to an explanation as to why their account has been closed, and have more opportunity to challenge such decisions.”