Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had discussions with the Financial Conduct Authority on the potential merits of taking into account the specific needs of local communities when setting minimum cash access standards rather than using geographic criteria.

The government recognises that cash continues to be used by millions of 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.

In determining what constitutes reasonable provision, the legislation requires the FCA to have regard to a government policy statement, any local deficiencies in cash access that it has identified and considers to have significant impacts and any other matters as it considers appropriate.

The government published a policy statement earlier this year. This stated that consideration should be taken of the degree to which services meet local needs in relation to both business and personal use. The government’s policy statement is available at: Cash Access Policy Statement.

The FCA is currently holding a consultation on its proposed regulatory approach ahead of this coming into effect by Q3 2024.