UK Cash Network

Debate between Baroness Tyler of Enfield and Lord Agnew of Oulton

Monday 8th November 2021 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, the Government’s consultation set out proposals for the Financial Conduct Authority to become the lead regulator for oversight of the retail cash system, including having responsibility for monitoring and enforcing new legislation and cash access requirements. In adopting this approach, the Government intend that the Payment Systems Regulator and the Bank of England continue with their existing functions with regards to cash. Co-ordinated actions by the FCA and PSR on cash as part of the Covid response have shown that joint working between the regulators at both strategic and operational levels is working.

[Baroness Tyler of Enfield (LD)]

My Lords, following on from the questions from the noble Lords, Lord Hunt and Lord Tunnicliffe, will the Government commit to giving the Financial Conduct Authority responsibility to start tracking trends in cash acceptance levels among UK businesses to help understand what action might be required to prevent that problem worsening? Separate from the legislation—it will be great to get a timetable for when it will be introduced—what specific measures will the Government take to ensure that people, particularly those who rely on cash, can continue to use cash to pay for goods and services?

[Lord Agnew of Oulton (Con)]

My Lords, as part of the FCA’s role in monitoring and enforcing cash access, the Government consider that it should be given responsibility for ensuring that access points provide reasonable access. In terms of recent activity, since the passing of the Financial Services Act, retailers now have the ability to offer cashback without purchase—I think it was from 29 June—and we are already seeing some take-up of that. Indeed, PayPoint, which operates terminals in several thousand outlets across the country, has committed to provide that extension to its service.