Access to Cash

Cash

"Access to cash remains vital to the day-to-day lives of individuals in our local communities across Castle Point. 

I welcome that the Financial Conduct Authority has been made ultimately responsible for ensuring the cash system works for consumers and businesses. Following this, in September 2020, the FCA published guidance setting out expectations that firms should consider the impact of branch and ATM closures on their customers’ everyday banking needs and consider the availability and provision of alternatives.  I also strongly welcome that the Government legislated through the Financial Services Act 2021 to facilitate the widespread adoption of cashback without a purchase.

I understand that ministers remain closely engaged with financial regulators during this time to monitor and assess risks around cash acceptance and access resulting from COVID-19. I welcomed the news that legislation will be brought forward to protect access to cash.

The Treasury is committed to protecting access to cash for those who need it and I welcome that a Call for Evidence was published in October 2020 which sought views on the key considerations and regulatory oversight of the cash system. The Call for Evidence has now closed and on the basis of responses a consultation has now been launched as the next step in legislating to protect access to cash and ensuring the sustainability of the UK’s cash infrastructure. The Access to Cash consultation sets out proposals to further legislation, and I look forward to seeing the positive outcomes of the consultation." - Rebecca, March 2022

 

ATMs 

  • Key findings of a report led by the University of Bristol in partnership with the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR), are: Free access to cash is readily available on almost all (99 per cent) of UK high streets within 500 metres. Just over three-quarters (77 per cent) of neighbourhoods have some form of free access to cash within 500m.
  • At present, LINK, the scheme responsible for ATM provision in our country, provides a top-up subsidy for free-to-use ATMs in remote areas. I was glad to hear that the upper limit on these top-up subsidies rose from 30 pence to £2.75.
  • LINK has promised to protect free ATMs more than one kilometre away from the next nearest free ATM or Post Office.
  • LINK has also committed to protecting free access to cash on high streets that do not have a free-to-use ATM or Post Office counter within one kilometre.
  • This is expected to benefit up to 3,500 free-to-use ATMs across the country. I also welcome that, as of September 2019, there were approximately 45,000 free-to-use cash machines across the UK, which represents a 13 per cent increase from a decade ago. 
  • UK Finance launched its Community Access to Cash initiative to help local communities to identify and secure access to cash and payment services. This follows UK Finance’s engagement with consumer representatives, local authority representatives and market participants on the cash needs of local communities. 
  • The Payment Systems Regulator has previously used its power to hold LINK to account over its commitment to communities, ensuring that there is a continued high level of access to cash. 

Bank Branches

  • It is vital that all customers, wherever they live, can still access over-the-counter services. I am glad the Government is supporting the Post Office’s relationship with the banks. An agreement enables 99 per cent of banks’ personal customers, and 95 per cent of banks’ business customers, to withdraw cash, deposit cash and cheques, and make balance enquiries at a Post Office counter across a network of 11,600 branches.
  • I welcome that the Financial Conduct Authority has published draft guidance outlining their expectation of firms when they are deciding whether to reduce their number of physical branches or free to use ATMs. The FCA made it clear that firms should consider the impact of any planned closure on their customers’ banking and cash access needs and consider possible alternative access arrangements.
  • I am pleased that Post Office and UK Finance are working together to increase publicity of Post Office banking services and ensure more customers can benefit from them.

 

Further work is ongoing to prepare future legislation designed to protect access to cash, to ensure that the UK’s cash infrastructure is sustainable for the long term.