Newcastle is going to town

A building society is stepping in to help customers deserted by the major banks.

Newcastle Building Society is to open community branches in two towns to give locals access to essential banking services.

Earlier this week, it offered a lifeline to bank customers in Hawes, North Yorks, who are facing the withdrawal of the town’s last bank, with the mutual planning to open a community branch there.

And yesterday it said it will open a branch in Wooler, Northumberland, too, which has been without banking services since 2018.

The building society’s chief executive Andrew Haigh said: “We are convinced the high street has an important role to play at the heart of our communities. We have been thinking around how we can be present in communities struggling to access financial services.”

According to Which?, 3,318 bank and building society branches have closed, or are due to close, since 2015. Millions of low earners who rent homes are taking a big risk by not having contents insurance.

When accidents happen they have to turn to high-cost credit or payday loans to replace or repair items.

Worst hit are those earning less than £17,000, says a report by Matthew Oakley of WPI Economics.

They are more prone to burglary, fire or flood than other groups, the report commissioned by Aviva found. It calls on the Government and insurers to help more low earners to get cover which can start at as little as £1.30 a week. Aviva has linked with social lender Moneyline to pilot home contents insurance for the poor.