Commons Sense

House of Commons · Ministers' Questions

Access to Cash

Tuesday 22 June 2021 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • The Government committed to legislate for protecting access to cash within local communities.
  • Legislative changes were made in the Financial Services Act 2021 to support cashback offers without a purchase requirement.
  • The Government will consult on further legislative proposals this summer to protect access to cash long-term.

Topics (select to filter)

Questions & Answers

Q1 Ronnie Cowan SNP
Economy
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.

Question

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.

Answer from John Glen

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.

Partly answered

Not addressed: The specific requirements on banks for free and accessible cash withdrawals were not addressed.

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Q2 Ronnie Cowan SNP
Economy Transport
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.

Question

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?

Answer from John Glen

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.

Partly answered

Not addressed: The specific legislative requirements on banks were not confirmed.

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Q3 Meg Hillier Labour (Co-op) Hackney South and Shoreditch
Economy Benefits & Welfare
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.

Question

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?

Answer from John Glen

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.

Partly answered

Not addressed: The specific legislative requirements on private providers were not detailed.

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