Devon County Council's Cabinet Member for Rural Affairs has written to the Prime Minister expressing her concern about Lloyds Bank customers no longer able to cash in cheques at Post Offices.

At a meeting of the council’s Cabinet, Councillor Cheryl Cottle-Hunkin confirmed that she will also write to the Lloyds Banking Group seeking reassurances around mitigations they should put in place to support rural communities.

A Lloyds spokesperson commented: “Most customers use our app as the easiest way to pay in a cheque, by taking a photo on their phone and letting us take care of the rest.”

The Lloyds Banking Group’s further justified the move by claiming that fewer than one in 15 customers who have paid a cheque in over the last year, have used the Post Office to do so - and two thirds of the customers who deposited a cheque at the Post Office are already using their app or other branches.

But Councillor Cottle-Hunkin says the change will have a significant impact on rural communities, particularly in Devon, where over 50 per cent of the population lives in rural areas.

"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 message to the Prime Minister, which has cross-party support from all group leaders at Devon County Council, and is also supported by 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,” which, she says “disproportionately affects rural areas.”

South Devon MP Caroline Voaden has also criticised Lloyds for their decision, saying: “The big banks clearly don't care about causing more and more inconvenience to their customers. First Lloyds closes bank branches, then they say customers can't pay in cheques to the Post Office - what will be next?

“Every year Lloyds makes more and more profit - £4.5 billion at the last report - and yet they are slashing high street services across the country, making life difficult for anyone who is unable to, or chooses not to use digital services. It's time the government stood up to the big banks - to protect local high streets and communities, particularly in rural areas.”

Devon County Councillor Cottle-Hunkin has urged the government to engage with Lloyds Banking Group to reverse their decision and maintain cheque deposit facilities at Post Offices. As well as ensure rural banking access standards are upheld in line with commitments to financial inclusion, and to accelerate the rollout of banking hubs and strengthen the Post Office Banking Framework to protect essential services

"This is not simply a matter of convenience," she says. "It is about fairness, accessibility, and sustaining rural economies."