Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he is taking steps to address the potential impact of a cashless society on financial inclusivity.

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

The government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities. The government considers that this legislation will also support organisations, including local businesses, to continue accepting cash by ensuring that they have reasonable access to cash deposit facilities.

Following this, the government recently published a Cash Access Policy Statement, which sets out the government’s policies on access to cash. The FCA is required by law to have regard to these policies when determining its regulatory approach. The FCA will publicly consult on its regulatory approach in due course. The government’s policy statement is available on gov.uk: https://www.gov.uk/government/publications/cash-access-policy-statement/cash-access-policy-statement