Cash Infrastructure

Lord Hunt of Wirral Excerpts

Monday 19th July 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, the Government believe that we need to make digital payments as accessible as possible, but we also acknowledge the continuing role of access to cash, particularly among some of the groups that the right reverend Prelate mentioned. That is why, as part of the consultation, reasonable access considerations will be given to the FCA to regulate, as I have said, so that people can have access to that cash. LINK, the UK’s largest ATM provider, has taken action to protect the distribution of free-to-use ATMs, including in deprived locations and more remote locations.

[Lord Hunt of Wirral (Con)]

My Lords, as an independent non-executive director of LINK, I recognise the valuable work being done to help ensure that cash remains readily available right across the UK. What analysis have the Government made of the declining acceptance of cash by retailers, particularly in the hospitality sector, and are any measures planned to reverse that apparent trend?

[Baroness Penn (Con)]

My Lords, analysis has been done by the Bank of England which showed that 40% of people had visited a store that did not accept cash in the six months prior to January 2021. That is an increase on the January 2020 figure of around 15%. We are taking forward several measures; as part of this consultation, we will help businesses continue to accept cash by ensuring reasonable access to cash depositing facilities, as well as cash ATMs and withdrawal facilities. There was also an amendment to the Financial Services Act 2021 to allow for cashback without purchase, which will also support local cash recycling and continued cash acceptance.