Santander UK freezes branch closures until 2028

Santander UK has pledged to stop further branch closures across its own network and recently acquired TSB sites until 2028. The commitment covers 305 Santander branches and 175 TSB branches across the UK for at least another 18 months, slowing the recent contraction of face-to-face banking services.

The move follows a series of cuts to Santander UK’s physical estate. Earlier this year, the bank announced plans to close 44 locations, a decision that put 291 jobs at risk. Less than a year before that, it reduced its UK branch network by nearly a quarter, closing 95 branches and putting 750 roles at risk.

Mahesh Aditya, Santander UK’s new chief, said branches were an “important part of our strategy” as the bank set out the new commitment. The statement signals a pause in branch rationalisation at a time when UK banks continue to shift more routine customer activity into digital channels.

Access to cash remains under scrutiny

Branch banking has declined as customers have adopted online and mobile services for payments, account management and other everyday tasks. The closure of bank sites has also raised questions about access to cash and in-person services, particularly for communities with fewer nearby alternatives.

The Financial Conduct Authority acted on those concerns last year by introducing rules for banks and building societies. Under the FCA framework, firms must assess whether local communities lack adequate access to cash services, including branches and ATMs, and address significant gaps where they arise.

The mechanism is designed to make branch and ATM closures subject to an access test rather than leaving each decision as a matter of network cost alone. Banks remain able to reshape their estates, but the rules require them to consider whether customers in the affected area would still have reasonable ways to withdraw and deposit cash.

Santander UK’s pledge applies both to its existing branches and to TSB sites brought into its network through the recent acquisition. Keeping both sets of branches open gives the combined footprint a fixed near-term perimeter while the bank integrates the businesses.

The bank has not announced further detail on staffing, investment plans for the branches, or how the commitment will be applied after 2028. The confirmed position is that no additional closures are planned within the covered network during the pledge period.

For customers, the immediate effect is greater certainty over local access to Santander and TSB branches during the next phase of the bank’s UK restructuring. For policymakers and regulators, the announcement comes as the balance between digital banking adoption and cash access remains a live issue across the sector.

This story draws on original reporting from Finextra Research.