Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the Access to Cash assessment methodology to determine the need for banking hubs in communities.

The Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.

The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. LINK, the independent industry coordinating body responsible for making access to cash assessments, will then assess a community’s access to cash needs, and will recommend appropriate solutions, including Banking Hubs, where it considers a community requires additional cash services.

LINK’s assessment criteria is based on rules set by the FCA. The FCA’s rules require LINK to consider a range of factors in their assessments. This includes travel times to nearby cash facilities and local population demographics, including the levels of vulnerability and the number of elderly people within the community.

Any decisions on changes to LINK’s independent assessment criteria are a matter for LINK, the financial services sector, and for the FCA, which oversees the access to cash regime. We continue to engage closely with all parties to ensure that the process meets the needs of individuals and businesses across the country.

With regards to banking hubs specifically, the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 240 hubs have been announced so far, and over 180 are already open.