Government launches access to cash consultation

The consultation is the next step in legislating to protect access to cash and ensuring that the UK’s cash infrastructure is sustainable for the long term.

Chancellor Rishi Sunak committed in the March Budget 2020 to legislate to protect access to cash and the Treasury undertook a Call for Evidence in 2020, which sought views on the key considerations associated with cash access. The government also legislated in the Financial Services Act 2021 to facilitate the wide-spread adoption of cashback without a purchase.

The consultation sets out proposals for further legislation and seeks views on: establishing geographic requirements for the provision of cash withdrawal and deposit facilities, the designation of firms for meeting these requirements, and establishing further regulatory oversight of cash service provision.

In response, John Howells, chief executive of ATM network Link, said: “We are pleased the government has taken the next step in protecting cash. The UK has been moving towards digital and cashless payments over the past decade, however, the pandemic has turbocharged this shift with ATM usage down almost 50% in two years. There are still five million people who rely on cash and while the UK has excellent coverage at the moment, we need a long-term plan to protect vulnerable consumers who cannot yet use digital or contactless payments. We look forward to working with the government and the rest of our industry to deliver for all consumers across the country.”

Natalie Ceeney, chair of the Access to Cash Review and who is now leading the industry Access to Cash Access Group, said: “Legislation to protect access to cash is vital. While millions of people are increasingly comfortable to live without visiting bank branches or ATMs, there are still a lot of people who rely on cash and they tend to be the oldest, the poorest and most vulnerable in society. We need to make sure that people can reasonably access cash, but also put place in measures to ensure businesses can accept cash too. That’s why it’s vital that the banking industry alongside regulators and government come up with solutions to help keep cash in the community.”

The consultation will run from 1 July 2021 until 23 September 2021.