- Government protects cash access services, free of charges,
across the UK
- New minimum expectation for cash-users set out by City
Minister
- Vulnerable cash users protected by Financial Conduct
Authority (FCA)
The vast majority of people and businesses are set to be no
further than three miles away from withdrawing cash under a new
framework set out by the Treasury.
A government statement published today [18 August 2023] set
the minimum expectations on banks to protect services for people
and businesses wanting to withdraw or deposit cash.
They can expect to withdraw cash without any fees – something
that has been set out in law.
As part of this move, the Financial Conduct Authority
(FCA) has been provided new powers by the government to
protect the provision of cash access services. This includes
protecting cash access without any fees for those who hold
personal current accounts.
Building on laws granted through the government’s Financial
Services and Markets Act 2023, the FCA will
use these newfound powers to make sure banks and
building societies are keeping up to these standards – and have
the power to fine them if they do not.
While the country is moving further away from using coins and
notes with the number of online payments rising from 45% to 85%
in the past ten years, cash can still be an integral part of many
businesses and people’s lives.
Economic Secretary to the Treasury, , said:
“Whilst the growing choice and convenience of digital
payments is great, cash has an important and continuing role to
play. That’s why we are taking action to protect access to cash
in law and laying out that this means fee-free withdrawals and
the availability of cash facilities within a reasonable
distance.
“People shouldn’t have to trek for hours to withdraw a tenner
to put in someone’s birthday card – nor should businesses have to
travel large distances to deposit cash takings.
“These are measures which benefit everyone who uses cash but
particularly those living in rural areas, the elderly and those
with disabilities.”
As it stands, the vast majority of people living in urban
areas can access cash deposit and withdrawal services within one
mile; with rural-dwellers around three miles away. Today’s policy
statement makes clear that the FCA should use its powers to
maintain this level of coverage, while recognising that needs may
differ by location and change over time.
It also makes clear that – if a service is withdrawn and a
replacement service is needed – this should be put in place
before the closure takes place.
The FCA is also required to ‘have regard’ to local deficiencies
in cash access. The policy statement sets out that the regulator
should consider factors such as the opening hours and distance to
cash access services, as well as the need for in-person
assistance.
Laws introduced in the Financial Services Act 2021 have
delivered cashback in over 2,500 shops across the UK – without
any need to buy something in store – through the LINK network.
ENDS
Notes to Editors
- View the government statement here, from the
morning of 18 August 2023
