Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to help ensure that local bank branches in Newport West constituency remain open to enable vulnerable people to have access to cash.

The Government recognises that cash remains an important part of daily life for millions of people across the UK, particularly those in vulnerable groups, and has committed to legislate to protect access to cash.

Last year, the Government held an Access to Cash Consultation on proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash. The Government’s proposals intend to support the continued use of cash in people’s daily lives and help to enable local businesses to continue accepting cash by ensuring they can access deposit facilities. The Government will set out next steps in due course.

Following the Government’s commitment to legislate, firms are working together through the Cash Action Group to develop new initiatives to provide shared services. The Government welcomes the direction set by industry’s commitments at the end of last year and looks forward to seeing what results they deliver in protecting cash facilities for local communities across the UK.

On bank branches specifically, the largest banks and building societies, including those with a presence in Wales, have been signed up to the Access to Banking Standard since 2017, which commits them to ensure that customers are well informed about branch closures, the bank’s reasons for closure and options for continued access to banking services.   

Guidance from the Financial Conduct Authority also sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. Firms are expected to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and consider possible alternative access arrangements. This ensures the implementation of closure decisions is undertaken in a way that treats customers fairly.

Alternative options for access can be via telephone banking, through digital means such as mobile or online banking, and the Post Office. The Post Office Banking Framework allows 99% of personal banking and 95% of business banking customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK.