Cash Infrastructure

Baroness Kramer Excerpts

Monday 19th July 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, analysis has been done by the Bank of England which showed that 40% of people had visited a store that did not accept cash in the six months prior to January 2021. That is an increase on the January 2020 figure of around 15%. We are taking forward several measures; as part of this consultation, we will help businesses continue to accept cash by ensuring reasonable access to cash depositing facilities, as well as cash ATMs and withdrawal facilities. There was also an amendment to the Financial Services Act 2021 to allow for cashback without purchase, which will also support local cash recycling and continued cash acceptance.

[Baroness Kramer (LD) [V]]

My Lords, access to cash is part of the broader financial inclusion crisis. Will the Government empower the FCA and other regulators to set aside competition rules where it would lead to co-operation by financial institutions to fill the gaps—for example, with shared premises and staff and potentially shared machines and software?

[Baroness Penn (Con)]

My Lords, I understand that a number of industry-led pilots are already under way which are taking forward the kinds of initiative that the noble Baroness is talking about, and they have been able to take place within the current competition framework.