LLOYDS Banking Group restored cheque deposit services at Post Offices and Banking Hubs across the country on Tuesday, September 1, in a major U-turn welcomed by Devon County Council.

The decision follows months of pressure from MPs, councils and industry groups after Lloyds became the only major UK bank to stop customers paying in cheques at Post Office counters.

Earlier this year, Devon County Council raised concerns that the move would hit rural communities hardest.

Councillor Cheryl Cottle-Hunkin, the council's Cabinet Member for Rural Affairs, wrote to the Prime Minister and Lloyds Banking Group warning that the loss of cheque deposit facilities would increase financial exclusion and create difficulties for older people, small businesses, farmers and residents without reliable digital access.

Lloyds Banking Group confirmed that it wants cheque deposits to be accepted again at Post Office branches and Banking Hubs until the end of 2030, subject to a commercial agreement with the Post Office.

Councillor Stuart Rogers, Devon County Councillor (Ashburton and Buckfastleigh) and Postmaster, welcomed the change.

He said: "Post Offices and Banking Hubs play an important role in keeping essential banking services available locally. This particularly matters for older people, vulnerable residents, farmers and small businesses who still rely on cheques."

Councillor Cheryl Cottle-Hunkin, Devon County Council’s Cabinet Member responsible for rural affairs, said: "I'm delighted that Lloyds Banking Group has listened to the concerns raised by communities across the country.

"This decision will help support residents, farmers, charities, community groups and small businesses across Devon, while also strengthening the role of Post Offices and Banking Hubs in our communities."

When the original decision was announced, Councillor Cottle-Hunkin warned that removing cheque deposit facilities risked deepening financial exclusion in a county where more than half the population lives in rural areas. She described Post Offices as a lifeline for many communities affected by the loss of bank branches.