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Cash Acceptance
20 March 2023
Lead MP
Martyn Day
Linlithgow and East Falkirk
SNP
Responding Minister
Andrew Griffith
Tags
Business & TradeAgriculture & Rural Affairs
Word Count: 14397
Other Contributors: 16
At a Glance
Martyn Day raised concerns about cash acceptance in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should act to protect access to cash, the ability to use cash, and the ability of businesses to easily deposit cash. Martyn Day called for a requirement for businesses to accept cash payments for in-person services equivalent to the maximum value of contactless transactions.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The petitions attracted over 58,500 signatures. The petitioners argue that cashless payments create an 'enforced dependency on banks' and a threat to privacy as people cannot make anonymous payments. They highlighted the importance of protecting the use of cash for vulnerable groups such as those with disabilities or lower incomes. Martyn Day emphasised that 6% of adults in the UK used cash to pay for everything over the past year, increasing to 9% among those in most vulnerable circumstances. He noted that up to 60% of people are holding more cash due to uncertainty and financial instability.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Argues that the trend towards a cashless society has been driven by Governments of all colours for decades, highlighting the Labour Government's decision to prevent pension access at post offices.
Na h-Eileanan an Iar
He agreed with Martyn Day's points, noting that it is flabbergasting that banks are not dealing with cash. He stressed the importance of protecting access to cash for vulnerable groups.
Ben Lake
PC
Ceredigion Preseli
The reduction in banking facilities, especially in rural areas, has accelerated the move to a cashless society. Banking costs are making it harder and more expensive for businesses to deposit cash, particularly affecting small enterprises.
Damien Moore
Con
Bewdley
It is disappointing that banks on high streets may not provide cash services, directing customers elsewhere instead of meeting their needs directly.
Drew Hendry
SNP
Inverness, Nairn, Badenoch and Strathspey
Mr. Drew Hendry highlighted the importance of cash acceptance in rural communities, citing specific examples from Aviemore, Kingussie, Newtonmore, Grantown-on-Spey, and Fort Augustus. He emphasized how the reduction in availability affects tourism, local businesses, elderly individuals with disabilities, and younger people starting to handle money. Mr. Hendry expressed concern over the lack of government support for these communities facing a 'banking crisis'. The hon. Gentleman raises the issue of businesses in rural areas facing significant challenges when cash acceptance facilities are withdrawn.
Duncan Baker
Con
Wythenshawe and Sale East
As a former businessman and postmaster, Duncan Baker underscores the necessity of cash acceptance in society, particularly for rural communities. He presented a Banking Services (Post Offices) Bill to ensure banks provide services via post offices. Highlighting research showing 59% preference for cash payments, he criticises bank closures due to lockdown-induced footfall drops. The closure of Barclays in Holt led to serious impacts on elderly residents and businesses. He suggests preserving the physical infrastructure through post offices or hubs to protect vulnerable populations. Additionally, he urges the Government to incentivise providers to continue accepting cash.
Gregory Campbell
DUP
East Londonderry
I witnessed a coffee outlet at London City Airport initially refusing to take cash but later reintroducing it after pressure from constituents, highlighting the need for flexibility in payment options.
Ian Paisley
DUP
North Antrim
He echoed concerns about the impact of a cashless society on those who need cash, such as older people or those with disabilities. He cited data from Age Scotland showing that many adults in Scotland do not have bank accounts and do not use the internet.
Margaret Ferrier
SNP
Rutherglen and Hamilton West
In response to the Petitions Committee's online survey, 61% of respondents said that they use cash to help with budgeting in light of the cost of living crisis. I am concerned about the government's stance on protecting cash as a tool for financial management. Cambuslang, in her constituency, hosted a successful bank hub pilot scheme. She questions if more such hubs could be funded to help communities facing cash access issues. Research indicates that carrying cash can assist individuals with gambling issues in budgeting, avoiding debt and managing their habits more effectively. Using debit cards makes it harder to control spending and monitor expenses.
Patricia Gibson
SNP
North Ayrshire and Arran
Access to cash is fundamental to ensuring that people have a choice in how they pay. We must prioritise maintaining access to cash for everyone who requires it. Ms Gibson highlighted the decline in cash infrastructure, noting that fifty-three percent of Scotland's bank branches have closed. She emphasized the importance of ensuring free access to cash alongside legal rights for its use, mentioning post office closures and a decline in free-to-use ATMs. She also pointed out the poverty premium faced by those on low incomes due to pay-to-use cash machines.
Paul Maynard
Con
Blackpool North and Cleveleys
He declared an interest as a member of the Consumer Council for Link. He discussed the dual issues of cash acceptance and access to cash, noting that costs are ultimately passed on to customers despite efforts by intermediaries to handle cash more efficiently. Paul Maynard was troubled by suggestions such as adopting Spanish legislation limiting card payments to €30 minimums and proposals to eliminate certain coin denominations or implement exact-amount services. He supported the notion of banking hubs but criticized the high expectations set for them, and highlighted the need for digital training and addressing financial exclusion. He also addressed concerns about deposit-taking ATMs and the cost of cash distribution.
Peter Bottomley
Con
Brentwood and Ongar
People should not be excluded from buying or paying for goods just because they lack access to cards or accounts. Many businesses need to accept both card and cash payments to cater to all customers.
Richard Foord
Lib Dem
Honiton and Sidmouth
Concerned about the impact on older people, small businesses, and the broader implications of a move towards a cashless society. He cited correspondence from constituents and the Bank of England's statement on the importance of cash.
Ronnie Cowan
SNP
Inverclyde
I agree that freedom of choice is imperative, and we need an education programme similar to decimalisation to make everyone comfortable with the transition towards a less cash-reliant society.
William Cash
Con
Stone
He highlighted the importance of protecting freedom of choice and privacy, emphasizing that cash should be protected as a key part of our transactional landscape. He referred to research indicating that 95% of respondents prefer using cash.
Tulip Siddiq
Lab
Hampstead and Highgate
Ms Siddiq expressed concern about the decline in cash acceptance, citing a net loss of 797 banks and financial services shops last year. She highlighted that 35% of people have encountered shops not accepting cash and stressed the importance of protecting access to cash for those who rely on it, particularly during the cost-of-living crisis. She mentioned the need for free-to-use ATMs, noting a decline of nearly 24% since August 2018.
Government Response
Andrew Griffith
Government Response
It is a pleasure to serve under your chairmanship, Ms Bardell, and it is always a pleasure to follow the hon. Member for Hampstead and Kilburn (Tulip Siddiq). I commend the hon. Member for Linlithgow and East Falkirk (Martyn Day) on securing this debate. Cash has many virtues, but it also comes with costs and vulnerabilities for businesses and a higher carbon footprint. There is no plan to eliminate cash; rather, the Government support its use through legislative steps in the Financial Services and Markets Bill, which will protect access to cash and deposit facilities for the first time since ancient Celts manufactured coins on this isle. The bill addresses rapid changes in payment methods but ensures statutory protection for those who seek it. Post offices are crucial in providing cash services in rural communities. Cash acceptance remains an emerging issue, with public services often leading the move towards a cashless economy while 98% of retailers continue to accept cash. Technology solutions and monitoring trends through regulators like the Financial Conduct Authority (FCA) help address these issues. Once the bill is passed, the Government will provide a policy statement about access to cash thresholds and the importance of maintaining cash infrastructure.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.