Major high street banks like Lloyds, HSBC, and NatWest will soon be required to give customers a full 90 days’ notice before closing accounts. This marks a significant increase from the previous two months of notice that customers received.
The new de-banking regulations come into effect for contracts agreed upon from April 28, 2026. Customers will now also receive a written explanation whenever their account is closed. Emma Reynolds, a Labour spokesperson, emphasized that these changes are aimed at enhancing customer protection. “Under the new rules, customers will receive more notice of account closures and have more opportunity to challenge such decisions,” she said.
The issue of de-banking gained national attention in 2023 after the controversial closure of Nigel Farage’s accounts at Coutts. This incident highlighted the potential risks of sudden account terminations—a concern that has resonated with many customers across the UK.
With these new regulations, small businesses are expected to benefit significantly. They often face challenges when banking services are withdrawn unexpectedly. The updated rules aim to prevent such scenarios and ensure that businesses can maintain access to essential banking services.
Additionally, the nine largest personal current account providers must offer basic bank accounts to UK residents without existing accounts. This is another step toward fostering inclusivity in banking services.
The Financial Ombudsman Service will play a crucial role in this new landscape. Customers who feel wronged by an account closure can now challenge decisions through this avenue—providing an essential layer of recourse.
Yet, while many welcome these changes as a step forward in consumer rights, some observers remain cautious about how effectively these regulations will be enforced. Will all banks comply fully with the new requirements?
The regulations are part of Labour’s initiatives announced in April 2025, reflecting a broader commitment to economic security for working people. Reynolds stated, “Delivering economic security for working people is at the heart of our Plan for Change.” The hope is that strengthening protections against de-banking will safeguard access to banking services for everyone.
As we approach April 2026, banks and customers alike prepare for these transformative changes in banking regulations. The landscape of how we interact with financial institutions may never be the same again.
