Carers and Online Banking

David Gauke Excerpts

Thursday 2nd February 2012 Commons Chamber

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

I should like to begin by thanking my hon. Friend the Member for Pudsey (Stuart Andrew) for securing a debate on this issue and for setting out so clearly the circumstances that carers face and the problems that might exist with the banking system. I am also grateful to him for setting out the difficulties that Mr and Mrs Dransfield have faced and telling us of their determination to address them. I sympathise with the difficult circumstances that can be faced by many carers, who make an increasingly important and valuable contribution to our society by supporting those who may be less able, for various reasons, to live an independent life.

The Government are committed to improving access to financial services, and in particular to bank accounts. It has been amply demonstrated that having a bank account is an essential aspect of modern life for any individual. My hon. Friend set out those circumstances clearly in the context of his constituents. It is clear that many individuals might need the assistance of a carer to help them manage their money, including people with a disability as well as the elderly.

I hope that it will be helpful if I briefly set out the regulations that apply in this area. Banks’ and building societies’ treatment of their customers is governed by the Financial Services Authority in its banking conduct of business sourcebook. The sourcebook includes a general requirement for firms to provide a prompt, efficient and fair service to all their customers. That includes older people, the disabled, and those who lack capacity to manage their account on their own. In addition, like all service providers, banks and building societies are bound, under the Equalities Act 2010—which my hon. Friend mentioned—to make reasonable adjustments for disabled people in the way they deliver their services. This may include allowing for a carer or deputy to act for the disabled person.

It is of course right that banks and building societies have put in place measures to protect their customers and themselves from fraud. They clearly need to satisfy themselves of their customers’ identity, both for commercial reasons and to meet their obligations under the Money Laundering Regulations 2007. Before a bank or building society can let someone manage the account of another person, it must have proof of the name and address of the account holder and of the person who will have legal responsibility for managing the account. It must also see evidence of that person’s authority to control the account holder’s money. When a carer has been given formal authority to manage another person’s finances through a power of attorney or court order, or by acting as a deputy, this can be proven through official documentation. However, when a person does not lack capacity to take decisions about their affairs but requires assistance to access their account, the situation can be more difficult. I accept that the case described by my hon. Friend falls into the former category.

It is worth noting that most banks offer their customers a range of channels through which to access their bank accounts, including by telephone or in a branch. It might well be that these channels are better suited to allowing access to a bank account via a deputy carer or other representative. I also note that the British Bankers Association has provided on its website information on banking for those with less capacity.

I nevertheless agree with my hon. Friend that older people, the disabled and their carers should be able to benefit from the convenience of an online service. With online banking, it is even more important that security measures are in place to prevent unauthorised persons from accessing consumers’ accounts. There is no opportunity for a member of the bank staff to verify the identity of a carer or representative acting on behalf of a customer. Customers have a duty to protect the security details they are given in order to minimise the risk of financial crime. This may preclude sharing their log-in details with their carer.

My hon. Friend set out the unique difficulty faced by those who need the assistance of a carer to access their bank account. As with the application of identity checks more generally, there is a balance to be struck between maximising security for customers and facilitating access for customers who need the help of a carer. The services offered by banks and building societies are evolving all the time, and I would urge the industry to ensure that account is taken of this issue in the development of online services.

I would like to thank my hon. Friend the Member for Pudsey once again for bringing this issue to the attention of the House and the Government. I have taken note of his comments about the campaign on this issue. I am sure this is not the last we will hear of this matter either from my hon. Friend or, indeed, from others. I, for one—and the Government as a whole—would be interested to hear from individuals facing some of these difficulties and from banks and building societies about how, in the course of improving their services, they are approaching the issue of permitting access for those who require the assistance of a carer. Treasury officials will pick up in their discussions with current account providers the very points that my hon. Friend has made this evening.

I am sure that our hon. Friend the Financial Secretary, who leads on these matters but is unavailable today, would be delighted to meet my hon. Friend, Mr and Mrs Dransfield and others as the matter develops to look at proposals to address this concern. I assure my hon. Friend and the House that we will continue to monitor this issue in the context of improving access to banking more generally and in the context of the Government’s actions to support carers.

I am grateful to my hon. Friend for raising this important issue. He has set out clearly and very well the concerns of his constituents. I assure him that his words have been heard clearly by the Treasury, and I am sure that they will have been heard clearly by banks and building societies as well.

Question put and agreed to.