New figures have exposed a dramatic surge in the number of UK bank accounts being forcibly shut down by financial institutions. Data obtained through a Freedom of Information request shows that nearly half a million Britons had their accounts closed in 2025.
A Decade-Long Surge in Account Closures
The statistics are stark. In total, 453,230 accounts were debanked last year. This represents a colossal increase when viewed over the longer term, being ten times higher than the 45,091 accounts closed in the 2016-17 period. Furthermore, the 2025 figure marks an 11 per cent rise on the 408,000 accounts shut down during the 2023-24 tax year.
Banks and building societies have attributed the vast majority of these decisions to "financial crime reasons". Under current UK law, lenders are permitted to close accounts for commercial reasons or if they suspect potential criminal activity.
Political Reaction and Legislative Changes
The figures have drawn sharp criticism, notably from Reform UK leader Nigel Farage. Mr Farage, who was himself debanked by Coutts, the private bank owned by NatWest, described the statistics as "appalling". He argued that European Union regulations make it "cheaper for banks to close accounts over unusual transactions".
This data emerges just ahead of the introduction of new legislation designed to increase transparency for customers. The upcoming rules will force banks to provide an explanation to customers when shutting their accounts. Additionally, lenders will be required to give account holders at least 90 days' notice before closure.
Limitations of the New Rules
However, consumer protections will have significant limits. The new 90-day notice period and explanation requirement will only apply to accounts opened after April 28, 2026. Furthermore, the rules will be subject to exemptions to allow banks to comply swiftly with financial crime and anti-money laundering regulations, meaning some accounts may still be closed without extended warning.
The scale of debanking continues to be a contentious issue, balancing consumer rights with the banking sector's obligations to combat financial crime. As the new rules take effect, their impact on these soaring closure rates will be closely watched.
