Access to Cash — [Mrs Maria Miller in the Chair]

The Labour MP highlighted the importance of access to cash for vulnerable communities, noting that withdrawals from cash machines are more than 40% lower than pre-pandemic levels. She cited evidence showing that 5 million adults use cash for most purchases, with 1.2 million adults without bank accounts and one in six people struggling with the shift towards digital payments due to the pandemic. Abena Oppong-Asare also raised concerns about the decline in free-to-use ATMs by 13% between 2018 and 2019, while pay-to-use machines increased, particularly in deprived communities.

The hon. Friend secures this debate and highlights the similarity of their constituencies' geography. The UK Government's response of a cashpoint within one kilometre is inadequate in mountainous areas where transport options are limited, making it difficult for constituents to access cash.

He commended the hon. Member for Pontypridd for securing the debate and setting out the issues regarding access to cash. He highlighted that the government has not done enough to convey that cash is safe during the COVID crisis and criticized retailers using it as an excuse to move to cashless payments. He emphasized the importance of addressing post office closures in his constituency, stating concerns about future availability of cash.

The hon. Friend is encouraged to pay tribute to community credit unions with branches that actively encourage people to bring and take out cash. The speaker agrees these credit unions need more government support to expand their networks. Mr. Thomas supported his colleague's call for action from the government, emphasizing that community credit unions could offer a viable alternative but would need support to expand their services. He urged the minister to expedite legislation allowing these organizations to provide more financial products.

The hon. Member for Merthyr Tydfil and Aberdare emphasised the importance of access to cash in isolated communities, where many services rely on it. He mentioned that two free-to-use cash machines were installed in his constituency, distributing over £2 million without charging withdrawal fees during the pandemic.

The hon. Lady is congratulated for securing this debate. He agrees that people should only need to travel short distances to pay in or take out cash, and that cashback should be readily available without purchase.

Stressed the importance of cash for his disabled wife and highlighted recent bank closures in remote areas like Wick. Supported the trial use of post office hubs as a solution and called on the Government to work closely with communities for innovative solutions.

Mr. Lamont highlighted the significant impact of bank closures in rural areas such as his constituency, where residents may need to travel up to 50 miles for a physical bank branch. He cited national statistics showing over 13,000 branches closed between 2012 and 2020. The MP also expressed concern about the inadequacy of post offices in providing full financial services compared to traditional banks.

The MP intervened to highlight that many high-street bank branches have closed, making it hard for communities to access physical money. She mentioned a pilot post office bank hub in Cambuslang, her constituency, which provides face-to-face services and suggested this scheme could be rolled out UK-wide.

In West Dunbartonshire, there has been a significant reduction in bank branches. The speaker supports the hon. Member's point and asks if moving to a cashless society should not occur without government intervention to ensure access to cash in local communities.

The hon. Member for Stockport highlighted the decline in cash usage and its impact on vulnerable consumers such as older adults, those on low incomes, and the digitally excluded who depend on cash to budget. He noted a 24% drop in free-to-use ATMs in his constituency due to reduced bank fees, affecting many constituents with physical impairments.

Patricia Gibson thanked the hon. Member for Pontypridd for initiating the debate, expressing her support for direct government intervention to halt the decline of cash. She highlighted the importance of the access to cash Bill and mentioned the financial strain on less affluent communities due to ATM fees, noting that banks need to pay their fair share. Gibson also discussed the critical role post offices play in providing basic banking services amid bank closures and argued that urgent action is needed to protect the financial infrastructure.

Is my hon. Friend aware of research by NatWest showing that many people who use paid-for ATMs travel further to use them than they would if using free-to-use ATMs? More research is needed on why people are heading for paid-for ATMs when they do not need to. Praised the progress made in addressing access to cash, citing a Which? survey that found two in five people reported being unable to pay with cash at shops due to lack of alternative payment methods. Emphasised the success of shared banking hubs as an example and urged banks to resolve issues by December, threatening financial penalties if they fail to act.

The decline in free-to-use ATMs is exacerbating financial exclusion among low-income individuals and those with poor digital connectivity. In Luton South, the number of free-to-use ATMs has reduced by 30% over three years. There are concerns about increased personal debt due to reliance on cards and contactless payments.

Cash usage is down across the UK, but some areas have seen a significant drop. In Inverclyde, free-to-use ATMs have decreased by 21% in three years. The transition to a cashless society raises concerns about technology robustness and availability, especially for vulnerable populations who rely on cash.

The hon. Lady is asked about the recommendation that businesses should protect cash acceptance, inquiring if this is something the Government needs to consider according to Cardtronics' work. Access to cash is a massive challenge with older people particularly affected. In Hyndburn, we have gone from 15 local units in 2015 to just five in 2021. A survey revealed that 80% of respondents aged 56 or above found access to cash limited and more than three quarters of those not using online banking were over 66 years old.

He thanked the hon. Member for Pontypridd for securing the debate and expressed concern over a two-tier society that excludes those who use or need to use cash, particularly affecting vulnerable individuals. He highlighted significant reductions in ATM machines and bank branches in Slough since 2018 and pointed out reasons why people prefer using cash. He asked the Minister about his plans to halt the trend of reducing access to cash and ensure its sustainability.

Cash use has dropped during the pandemic but is now at 75% of pre-covid levels. People worry about safety and security with cash payments, and businesses refusing to accept cash due to perceived covid risks has led to restrictions on spending choices.