ePolitix.com reports on the latest session of questions to Treasury ministers.
Lloyds Banking Group was accused of having "betrayed a regard to the dignity" of its workforce in the Commons.
Treasury select committee chairman John McFall hit out at Lloyds over the decision to axe the entire Cheltenham and Gloucester branch network.
During Treasury questions, McFall pressed exchequer secretary Kitty Ussher to join him in urging the bank to ensure those who lost their jobs were treated properly.
In a question on savings, McFall said: "There will certainly be a reduction in savings and household income in the Cheltenham and Gloucester area today with the peremptory announcement by Lloyds of 1,600 job losses of C&G employees.
"Isn't it the case that Lloyds have betrayed a regard to the dignity of people and their employment?
"Will you join me in writing to Cheltenham and Gloucester to ensure that people are treated properly when it comes to being unemployed?"
Ussher responded that staff numbers were a commercial matter for Lloyds, but added: "I'm sure MPs on all sides of the House who have constituents who are affected will want to make sure they are treated as decently as possible."
The exchanges came after the Lloyds group said it was closing its network of 164 C&G branches in November as it focused on building its mortgage and savings direct and intermediary businesses.
The situation at Lloyds dominated the departmental questions.
Fellow Treasury committee member Sally Keeble (Lab, Northampton North) later added her concerns over the job losses.
She urged ministers to make sure the banks understood that the government expected them to "honour their wider social commitment, both to their employees and also their customers and the wider community".
Replying, economic secretary Ian Pearson stated that it "does not make clear sense to have three branches of the same bank within 100 yards of each other". But he urged the banking giant to follow the right sort of processes and treat "not only customers fairly but its staff fairly".
Mark Harper (Con, Forest of Dean) added his concerns. The Tory backbencher called on UK Financial Investments (UKFI), which looks after taxpayers' interests in the bailed-out banks, to seek assurances from the bank the job losses were temporary.
Pearson told Harper that it was "vitally important" that UKFI operated on a commercial basis.
"These are commercial decisions that Lloyds Banking Group are taking. As with any major company we would expect that company to act in a socially responsible manner."
