In a speech on the future of banks, Osborne confirmed that from September customers would be able to switch their current account provider within seven days.

Calling it “a revolution in customer choice”, the Chancellor said all direct debits and standing orders will be switched with no hassle.

However, Michael Ossei, personal finance expert at comparison site uSwitch.com, claimed Osborne did not go far enough.

While Ossei welcomed cutting the switching process to just seven days, saying it promoted greater competition among high street banks, he said ministers don’t seem to have the appetite to really help consumers.

“It is disappointing to see that ministers are still rejecting the introduction of portable bank account numbers which would not only speed up the switching process, but would also remove the responsibility and hassle of changing direct debits and standing orders when moving current account. This is a genuine hurdle in the market and ministers don’t seem to have the appetite to genuinely help consumers by breaking it down,” he said.

Meanwhile, consumer group Which? cautioned that in the past the banking industry has lobbied hard to water down reforms.

Executive director Richard Lloyd said: “The reforms could be game changing and good news for consumers used to despairing at shoddy service, unfair fees and complicated switching.

“We look to the Government to see this through and make 2013 the year that banks start working for customers, not bankers.”