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Bank holidays exist because in 1871 the UK had no statutory days off, and the banking system needed predictable closure days. The man behind the change was Sir John Lubbock.
The 1871 Act
Sir John Lubbock — banker, Liberal MP and amateur naturalist — pushed the Bank Holidays Act through Parliament in 1871. Banks closed on so many traditional saint’s days at the time that something had to give. The Act fixed Easter Monday, Whit Monday, the first Monday in August and Boxing Day. Christmas Day and Good Friday were retained by custom rather than added by the Act.
What changed since
The Banking and Financial Dealings Act 1971 modernised the law and added 1 January (from 1974) and the May Day Bank Holiday (from 1978). The Spring Bank Holiday replaced Whit Monday and was fixed to the last Monday of May. Scotland and Northern Ireland gained their distinctive additions over the same period.
Why we still have them
Bank holidays serve three purposes today: a coordinated pause for the financial system, a guaranteed day off for many workers (depending on contract), and a signal to retail and public services to plan reduced hours. Removing one would face significant political opposition — the days have become culturally embedded.
Frequently asked
Is the answer to ‘why do we have bank holidays’?
To give bank workers and the public a small set of guaranteed days off, originally created in 1871.
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).