Devon councillor raises concerns over Lloyds cheque deposit changes

Devon County Council’s Cabinet Member for Rural Affairs has written to the Prime Minister to raise concerns about Lloyds Bank customers no longer being able to cash in cheques at Post Offices.

Councillor Cheryl Cottle-Hunkin also told a meeting of the council’s Cabinet this week that she will write directly to Lloyds Banking Group seeking reassurances about what mitigations will be put in place to support rural communities affected by the change.

Lloyds has said customers can instead deposit cash at their local Post Office branch using a debit card and cash in cheques through its mobile banking app. However, Councillor Cottle-Hunkin warned the move would have a significant impact on rural areas, particularly in Devon, where more than half of the population lives in rural communities. For example, people living in Chagford and Moretonhampstead on Dartmoor currently have the choice of visiting Exeter (which is approximately 20 miles away), Newton Abbot (where there is a road closure, forcing longer diversions to get to the town) or Okehampton (where the Lloyds bank will be closing in March).

“For many residents, especially older people, small businesses, and those without reliable digital connectivity, the ability to deposit cheques at their local Post Office is not a convenience but a necessity,” she said.

“Removing this service risks deepening financial exclusion and undermines government commitments to protect access to banking services.”

In her letter to the Prime Minister, which has cross-party backing from all group leaders at Devon County Council and the support of Devon Communities Together, Councillor Cottle-Hunkin describes Post Offices as a ‘lifeline for rural communities, especially as the number of UK bank branches has fallen dramatically,’ a trend she says ‘disproportionately affects rural areas’.

She has urged the government to engage with Lloyds Banking Group to reverse the decision and maintain cheque deposit facilities at Post Offices, to ensure rural banking access standards are upheld in line with commitments to financial inclusion, and to accelerate the rollout of banking hubs while strengthening the Post Office Banking Framework to protect essential services.

“This is not simply a matter of convenience,” she said, “it is about fairness, accessibility, and sustaining rural economies.”

Councillor Cottle-Hunkin also thanked fellow county councillor and Postmaster, Councillor Stuart Rogers, for bringing the issue to her attention.