MPs have taken the banking industry to task for failing to promote ‘no frills’ basic bank accounts aimed at people on low incomes.

The Banking Code Standards Board, which operates a voluntary code of conduct, told the Treasury committee it wanted to implement four key changes to the code to help those opening basic bank accounts.

But any changes would not be implemented until early 2008. Angela Eagle, Labour MP for Wallasey, said: “If a government department did that it would be slammed as bureaucratic.”