Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an of the potential impact of banks not accepting cheques on groups with protected characteristics; and whether she has discussions about this with (a) the Financial Conduct Authority, (b) the Payment Systems Regulator and (c) UK Finance.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government recognises that cheques remain an important payment method for some people, including those with protected characteristics. UK’s largest retail banks continue to accept cheques through a range of channels, including at bank branches, in banking hubs and the Post Office, by post, and digitally through cheque imaging.

The Treasury has not made a formal assessment of the impact of individual banks’ decisions on specific groups. Where banks have taken commercial decisions to change how they accept cheque deposits, they are expected to consider the needs of customers in vulnerable circumstances and to ensure alternative routes remain available.

The treatment of customers by UK banks is governed by the Financial Conduct Authority (FCA), which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services. Treasury Ministers and officials engage regularly with the FCA, the Payment Systems Regulator and UK Finance on matters relating to retail banking and payments.

Ensuring everyone has access to the appropriate financial products and services they need is a priority for the Government. That is why we have published the Government’s Financial Inclusion Strategy which sets out a package of ambitious measures to improve financial inclusion and resilience across the UK. Access to banking is a key area of focus in the Strategy, alongside digital inclusion, including an intervention to make financial products more accessible through an industry-led inclusive design working group. Action to improve financial inclusion requires a joined-up approach, and the Government is committed to continuing to work collaboratively across the UK on this important agenda going forward.