Questions & Answers
Q1
Partial Answer
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Context
The issue of protecting access to cash within local communities is under scrutiny, particularly with the recent legislative changes in the Financial Services Act 2021.
What steps his Department is taking to protect access to cash within local communities. The Government has committed to legislate for this and there are concerns about the impact of reducing physical cash availability on vulnerable populations.
We recognise that cash is crucial for many individuals and businesses. Legislative changes were made in the Financial Services Act 2021 to support cashback offers without a purchase requirement. We will consult on further legislative proposals this summer to protect access to cash long-term.
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Assessment & feedback
The specific requirements on banks for free and accessible cash withdrawals were not addressed.
Response accuracy
Q2
Partial Answer
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Context
The recent announcement of further consultation on cash access legislation has raised concerns about the practical implementation, especially regarding free and accessible withdrawal services.
Will the Minister confirm that any forthcoming legislation will mandate banks to provide adequate, free cash withdrawal facilities meeting local community needs in both urban and rural areas?
We will carefully examine evidence for the best interventions. As of March 2020, 98% of people can access free cash within 3 km, but usage has dropped from 56% in 2009 to 17% last year. We need appropriate legislation.
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Assessment & feedback
The specific legislative requirements on banks were not confirmed.
Response accuracy
Q3
Partial Answer
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Context
Approximately 1 million people rely solely on cash, while around 4 million use it regularly. The Treasury is conducting a second consultation on the issue, raising concerns about private providers' role in distributing cash.
Can the Economic Secretary provide an indication of the type of legislation to ensure that poor individuals can access cash without reliance on supermarket transactions?
We recognise technology's role in addressing the issue. The LINK scheme has a £5 million fund to help deprived areas, and we will use the extensive network of 11,500 post offices to ensure cash access remains available.
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Assessment & feedback
The specific legislative requirements on private providers were not detailed.
Response accuracy