Ministers have vowed to protect access in a major victory for those fighting back against a cashless society.
The Treasury announced measures to protect free cash access services across the United Kingdom, just hours after GB News presenters handed a petition in at Downing Street.
They also heaped praise on the channel’s campaign and stressed vulnerable cash users will be protected by the Financial Conduct Authority.
The FCA will build on laws set out in the Financial Services & Markets Act to make sure banks and building societies maintain standards and enforce fines when standards are not met.City Minister Andrew Griffith 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.”
The announcement is a big win for the GB News Don’t Kill Cash campaign, which calls on the Government to “introduce legislation to protect the status of cash as legal tender and as a widely accepted means of payment in the UK until at least 2050”.
Griffith added:
“GB News has it spot on – access to cash is incredibly important to many. It’s a choice that we are going to protect.
“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.
“That’s why we are acting now 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.”
The announcement comes after recent data revealed the number of online payments rose from 45 per cent to 85 per cent in the past decade. However, more than five million adults still rely on cash in the UK and is used in six billion transactions every year.
The Government’s financial statement makes clear the FCA should use its powers to maintain that the vast majority of people living in urban areas can access cash deposit and withdrawal services within one mile. Residents in rural-dwellings should be able to access cash deposit and withdrawal services from around three miles away. But the Treasury stressed it should be recognised that needs may differ by location and change over time.
Laws introduced in the Financial Services Act 2021 have delivered cashback in over 2,500 shops across the UK. The cash can be taken out without the need to purchase anything in store through the LINK network.
