Starting April 28, 2026, new regulations will transform how UK banks handle account closures, offering greater protection to millions of customers. This change comes in response to a dramatic rise in the number of accounts being shut down without warning.
Data obtained under the Freedom of Information Act reveals that 453,230 bank accounts were closed during the last financial year—an astonishing tenfold increase from the 45,091 closures recorded in 2016/17.
Under the new law, banks will be legally required to provide at least 90 days’ notice before closing a current account. Customers will also receive a clear, written explanation outlining the reasons for the closure, allowing them the opportunity to challenge the decision.
Economic Secretary to the Treasury, Emma Reynolds, emphasized the importance of these changes: “Delivering economic security for working people is at the heart of our Plan for Change. Strengthening protections against debanking will safeguard access to essential banking services for both individuals and businesses.”
Labour Party MP Reynolds added that these rules will grant customers more time to dispute account closures and facilitate the search for alternative banking options. This is particularly beneficial for small businesses, which have often faced sudden account closures with little recourse.
The reforms follow high-profile cases, such as the debanking of Reform UK leader Nigel Farage by Coutts, which sparked public debate about transparency and fairness in banking.
Ultimately, the new regulations aim to protect the most vulnerable by ensuring continued access to basic financial services and increasing transparency in bank account management.