EU law means one million Britons will have right to access basic banking services

Labour MEPs will vote tomorrow (16 April) for the European Union to establish a right for EU consumers to open and access a basic payment account.

It is estimated more than 58 million individuals (10%) over the age of 18 across the EU do not have access to a bank account. The new law means they can open a cheap, basic account which offers them all the necessary features to deposit and withdraw money, transfer funds online and make card payments.

Labour's European spokesperson on economic affairs, and vice chair of the European Parliament economic and monetary affairs committee Arlene McCarthy MEP said: "This new European law will enable anyone legally residing in the EU to open a basic payment account with clear rules and comparable fees, and to easily switch to another that offers better terms.

"More than one million people in the UK don't have access to bank accounts. Increasing numbers of people in the UK who are going through bankruptcy are being denied access to a basic bank account despite there being no legal reason why.

"If you prevent people from being able to hold a bank account you are in effect excluding them from the ability to benefit from financial products and services, deals and discounts and perhaps most importantly certain jobs which require access to a bank account.

"It creates an unnecessary social divide between those who hold bank accounts and those who don’t."

McCarthy added: "In the UK the move towards universal benefits payments means bank accounts are going to become an increasingly important way for people on benefits or with low incomes to manage their money.

"Credit Unions are ahead of the game and are already helping people to manage their monthly payments and ensure that they have enough money at the end of the month, banks too need to be playing their part."

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