Access to Cash

Dear constituent,

Thank you for contacting me about access to cash. I appreciate the concerns that many people have on this issue and agree that we need action, including legislation, on it.

The use of cash has been declining for some time. This has only been accelerated by the pandemic, with consumers increasingly turning towards digital payments. However, that change is not taking place equally across all parts of society. There are still about one million people in the UK without a bank account and some households continue to rely on cash to budget or because of a lack of access to online banking. Many communities and many people, including the older and more vulnerable, as well as many small and medium-sized businesses, still depend on cash.

An unmanaged drift towards a cashless society therefore clearly risks seriously disadvantaging these people, businesses and communities. It is worrying, for example, that many free-to-use ATMs are being converted to pay-to-use ATMs, particularly in deprived communities. It is vital that we find ways to manage and protect access to cash and that the Government ensures the decline in cash use does not contribute to inequality or shut those who continue to use cash out of important services.

Having promised to bring forward legislation on this issue in 2020, the Government finally published a consultation on proposed changes to the law on access to cash on 1 July 2021. The Government says the proposals in the consultation aim “to ensure that people and businesses can continue to make cash withdrawals and deposits within a reasonable distance”. It seeks views on geographic access requirements for providing access to cash withdrawals and deposits, on which firms should be required to provide access and on proposals to ensure the Financial Conduct Authority has the appropriate power and responsibilities to hold firms to account on this issue. The consultation closes on 23 September.

I have long supported calls for the Government to bring forward proposals to legislate on this issue. I can therefore assure you that I will continue to monitor progress on the consultation and to support efforts to press the Government for a serious plan of action for protecting access to cash.

Thank you once again for contacting me.

Yours sincerely,

Peter Dowd MP