COUNCILLORS have welcomed the restoration of cheque deposit services by Lloyds Bank at Post Officers and Banking Hubs.

The major U-turn comes after 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 has now confirmed 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.

Ashburton and Buckfastleigh county councillor Stuart Rogers, who is county Postmaster, welcomed the change.

He said: ‘This is very good news for communities across Devon.

‘Over the past few days Lloyds Banking Group has advised MPs that its decision to remove cheque deposit facilities is being reversed.

‘This follows strong lobbying from MPs, county councils such as Devon and industry groups. It's encouraging that they have listened.

‘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.

'Sustaining Post Offices and protecting services for those who need them most is something that unites people across Devon.

‘We will continue working with colleagues and local communities to make sure residents are aware of the changes once the service is reinstated.

‘There are very few things that unite elected representatives and the sustainability of Post Office services is one of the areas that achieves democratic support. I urge Devon residents, businesses, farmers and organisations to support Devon’s Post Offices.’

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 and is moving to restore this important service.

‘When this issue was first raised, we made it clear that cheque deposits remain a vital service for many people in rural areas.

‘While digital banking works for some, it is not the right solution for everyone.

‘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.

‘I’d like to thank Councillor Stuart Rogers, MPs from across the political spectrum and everyone else who campaigned for this change.

‘It's a great example of what can be achieved when organisations work together on behalf of local people.’

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.