A report out today is calling on the Chancellor, Rishi Sunak, to introduce legislation at the Budget to protect cash access for as long as people need it, enabling the UK to move forward to a digital future without leaving millions behind.
Ine year since the Access to Cash Review published its final report they have found the situation is getting worse for consumers.
One quarter of all ATMs now charge customers to withdraw their own money, the collapse of the cash withdrawal service at the Post Office was only narrowly averted in November 2019 in the face of public pressure; and increasing numbers of small and large business are ‘going cashless’ in the face of the rising costs of banking cash leaving some consumers unable to access services.
The cash system is a complicated marketplace run almost entirely by commercial businesses. As cash use continues to decline, greater strains are being placed on the system, leading to unprofitable services (such as rural ATMs) closing, or charging – resulting in charges to consumers rising by £29m in 2019 alone.
There are signs that commercial pressures could lead to wholesale withdrawal by a wide range of commercial players from providing cash services, leading customers unable to access cash or pay with cash. Voluntary arrangements are holding the fort, but they cannot be relied upon to last.
The only way to manage the cash system is for the government to legislate and give regulators the tools that they need to protect cash access.
Access to cash propose legislation to put an obligation on banks to provide suitable cash access to their customers. This would us allow the UK to move forward into a digital future without the risk of millions of people being left behind.
Legislation would also help enable services which could alleviate the strain on the cash system, such as allowing consumers to get cashback more widely without having to make a purchase. This currently cannot be done under current UK law. This change could allow all retailers or pubs to provide cash access across the UK.
Natalie Ceeney, Independent Chair, Access to Cash Review: “The UK is fast becoming a cashless society – without knowing what this really means for consumers or for the UK economy. Many people may want a completely digital future, but we need to make sure that this shift doesn’t leave millions behind or put our economy at risk.
I’m glad that our report of a year ago made the industry and regulators take the issue of cash far more seriously. We welcome the positive initiatives from the banking industry and much needed co-ordination from regulators. However, commercial pressures on all businesses mean that we cannot rely on the status quo, and we can see serious strains emerging. Regulators currently don’t have the tools that they need to ensure that everyone who needs cash can get it. Now is the time for government to protect cash and allowing us to look ahead to how we can prepare for a digital future which includes everyone.”
