Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is planning to take to ensure access to cash for elderly and vulnerable people in response to bank closures.

The Government recognises that cash is important to the daily lives of millions of individuals and businesses across the UK, particularly to those who may be in vulnerable groups. That is why the Government has committed to protecting access to cash for those who need it and ensuring that the UK's cash infrastructure is sustainable for the long term.

The Government made legislative changes via the Financial Services Act 2021 to support the widespread offering of cashback without a purchase, which will allow shops and other businesses to offer a new form of cash withdrawal service to local communities. The Government also recently closed an Access to Cash Consultation on 23 September, setting out further proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash.

In September 2020, the FCA published guidance for regulated firms setting out its expectations for banks, building societies and credit unions when they are considering closing branches or ATMs. It requires them to notify customers and the FCA of upcoming branch closures and consider the provision of alternatives for customers.

Banks themselves are best placed to make the commercial decisions required to operate their businesses for their customers. However, the Government believes that the impact of branch closures should be understood, considered, and mitigated where possible so that all customers, wherever they live and especially the most vulnerable, continue to have access to face-to-face banking services.