Osborne And Banks At Odds Over No-Fee Account The Government is embroiled in a tussle with some of the UK's biggest banks over a plan to force them to establish a fee-free current account that would be available to millions of benefit claimants. Sky News has learnt that Treasury officials are in talks with the major high street lenders about the details of a new industry-wide basic bank account that would be introduced within two years. But sources said that negotiations between the Government and the banks have been beset by disagreements in recent weeks about the structure of the new accounts, and the level of fees that could be imposed on those using them. George Osborne, the Chancellor, is said to want to announce imminently that the banks have agreed to the Treasury's proposals, with a public declaration possible as soon as next week's Autumn Statement. Lenders including Barclays, HSBC, Lloyds Banking Group and Santander UK are understood to be among those involved in the discussions. However, it was unclear on Friday whether a sufficient number of the major banks would sign up to the plan within the next few days to pave the way for an announcement next week. Under a European Union (EU) Directive adopted by the Council of Ministers in July, member states are obliged to ensure that citizens have access to a basic payment account within two years. Mr Osborne is said to want to make the announcement imminently While the EU law says that the account must charge fees described as "fair," the Treasury is understood to be pushing UK bank executives to commit to providing accounts which levy no fees or charges at all. Officials have also told lenders that they want the new account to offer a debit card, access to the ATM network, and the ability to withdraw cash in branches. The demands have frustrated bank executives, who have warned that if they agree to them, it will cost them substantial sums of money every year. They say privately that offering the basic accounts on a fee-free basis will mean that the costs will have to be subsidised by other customers through higher charges. "This is yet another case of the Government gold-plating rules from Brussels," said one executive. Some of the banks are also pressing to be allowed to transfer basic account customers to fee-charging products if their financial circumstances improve, an idea the Treasury is understood to be lukewarm about. A further concern raised during talks with the Treasury is that the new account may attract demand from large numbers of consumers who are not benefit claimants, which has prompted the banks to urge the imposition of strict eligibility criteria. The Government estimates that up to 7m people will participate in the Universal Credit programme by 2019. The British Bankers' Association (BBA) is understood to be leading the negotiations with the Treasury about the broad framework of the plans, but for competition reasons, discussions about pricing and fees have been held by the banks on a bilateral basis. The big banks have offered basic accounts, which do not have overdraft facilities, for several years, with the BBA saying in 2012 that more than 9m of them were open. However, the terms and structure of the accounts vary between lenders, with some having a higher customer age limit and others including restrictions on how funds can be withdrawn. Some also impose charges for returned item fees or unpaid transaction fees, when payments are declined owing to insufficient funds. Estimates suggest that more than 1m adults in the UK do not have bank accounts, often because of a poor credit score. The equivalent number across the EU is as high as 58m. Benefit claimants in the UK can receive their welfare payments through a Post Office Card Account, but these also have significant limits on how and where they can be used. A source said it was "no more than 50-50" that an agreement on the new basic account would be included in Mr Osborne's Autumn Statement. Sky News revealed earlier this week that the Chancellor plans to announce an enhanced current account-switching regime next Wednesday. The Treasury and the BBA declined to comment.