Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent steps his Department is taking to help ensure vulnerable groups have access to cash and in-person banking services.

The government recognises that while the transition towards digital banking and payments brings opportunities, cash and in-person services continue to be used by many people, including those who may be in vulnerable groups, across the UK.

The government has recently legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. The Act establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities. As part of this, the FCA must also seek to ensure that there is reasonable provision of free cash withdrawal and deposit facilities in relation to personal current accounts.

Decisions on opening and closing branches are a commercial issue, and the government does not intervene in these. However, the FCA’s guidance expects firms to carefully consider the impact of any planned closure on their customers’ everyday banking and cash access needs and consider possible alternative access arrangements for those who rely on in-person services. In particular, the FCA expects firms to analyse the needs and characteristics of customers in vulnerable circumstances currently using the sites. This includes known protected characteristics such as age or disability.

In the context of the government’s access to cash legislation, the financial services sector is working together to develop and provide shared services. To date, industry has committed to over 100 shared cash access services, including over 60 banking hubs. People can also access cash and everyday banking services via their local Post Office.