Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of Link’s possible responsibility for delivering access to banking services and access to cash services.

Banking is changing, with many customers benefiting from the convenience and flexibility of managing their finances remotely. However, the Government understands the importance of face-to-face banking services to communities and is committed to supporting sufficient access for customers across the country.

The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. LINK, the independent industry coordinating body responsible for conducting access to cash assessments, will then assess a community’s access to cash needs, and will recommend appropriate solutions, including banking hubs, where it considers a community requires additional cash services.

LINK’s assessment criteria are based on rules set by the FCA. The FCA’s rules require LINK to consider a range of factors in their assessments. This includes travel times to nearby cash facilities and local population demographics, including the levels of vulnerability and the number of elderly people within the community.

Any decisions on changes to LINK’s independent assessment criteria are a matter for LINK, the financial services sector, and for the FCA, which oversees the access to cash regime. Neither the FCA or LINK have responsibility for access to banking or in-person services.

To support communities across the UK, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 270 hubs have been announced so far, and more than 210 are already open.

Banking hubs provide access to everyday counter services through Post Office staff, including cash withdrawals and deposits, balance enquiries and bill payments. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out other banking services.