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A bank holiday is a public holiday in the United Kingdom on which banks are formally closed, and by extension most government offices, schools and services pause.
Origin of the term
The Bank Holidays Act 1871 was introduced by Liberal politician Sir John Lubbock. Before that there was no statutory list — the Bank of England closed on roughly 33 saint’s days a year, but no other day was protected. Lubbock’s Act fixed four common days for everyone, plus Christmas Day and Good Friday by tradition.
What “bank holiday” actually means
Strictly, a bank holiday is a day on which banks must close (and by extension cheque clearing and inter-bank transactions stop). It is not a guarantee that any individual employee is entitled to the day off, or to any extra pay. Whether you get either is governed by your employment contract, not the Act.
Common confusion
Many UK residents use “bank holiday” and “public holiday” interchangeably, and informally that’s fine. Strictly, “public holiday” is a broader term covering days like the Sovereign’s Birthday or VE Day commemorations that aren’t necessarily bank holidays. See our note on bank holiday vs public holiday.
Frequently asked
Is the answer to ‘what is a bank holiday’?
A statutory public holiday in the UK on which banks and most public services close.
Where is this defined in UK law?
The Bank Holidays Act 1871 and the Banking and Financial Dealings Act 1971 are the two main statutes.
Do bank holidays change every year?
The dates change but the holidays themselves don’t. Some are tied to specific dates (Christmas, New Year), some to religious calendars (Easter), and some to fixed weekdays (first/last Monday of a month).