The EU Payments Account Directive more commonly known as PAD sets a European wide standard on the services provided to EU residents by banks. The directive is meant to ensure that services, including an account switching service, the right of access to a basic bank account for those who are legally resident in the EU and clear and transparent information on fees and charges, are available across EU banks.

The government is required to have implemented PAD in the United Kingdom by 18 September 2016 and a new paper published by HMRC provides information on how the UK has met its responsibilities under the directive. This includes making sure fees charged by banks are transparent and ensuring the availability in the UK of a free seven day current account switch service known as the Current Account Switch Service (CASS).

In addition, since 1 January 2016, the largest banks in the country also offer basic bank accounts to over 1 million people in the UK. These accounts will help people who do not have a bank account, are ineligible for a standard current account or who can’t use their existing account due to financial difficulty. There are estimated to be over 1 million people in the UK without a bank account.

The paper also confirms that until Brexit take place, the government will continue to negotiate, implement and apply EU legislation as and when required.