Retailers: Cash

Lord Hodgson of Astley Abbotts Excerpts

Thursday 15th December 2022 Lords Chamber

Asked by

[Lord Hodgson of Astley Abbotts]

To ask His Majesty’s Government what discussions they have had with retailers and other outlets concerning their acceptance of cash as legal tender.

[Lord Harlech (Con)]

My Lords, Ministers and officials have meetings with a variety of organisations in the public and private sectors, including on access to cash and related issues. Details of ministerial meetings are published on a quarterly basis. Regarding cash acceptance, it should remain the choice of organisations whether to accept or decline any form of payment. The Government’s legislation in the Financial Services and Markets Bill intends to support cash acceptance by ensuring that businesses have reasonable access to deposit facilities.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, I am very grateful to my noble friend, in particular for standing in at short notice when the noble Baroness, Lady Penn, was delayed. I think that this is the first time that he has answered a Question; can I be the first to congratulate him? However, are the Government aware of the scale of the problem faced? Some 5 million people—some of the most vulnerable in our society—depend on cash. Forcing such people to use plastic cannot be a good idea. Some 20 million of us use cash more than twice a week, and on average three cash machines are taken out of service every day. If my noble friend and his officials think that I am exaggerating, they might care to read the article in the Financial Times last week about offering lifelines to people struggling in a cashless society.

[Lord Harlech (Con)]

The Government want to ensure that people have appropriate access to financial products and services, which includes bank accounts, payment services and cash. LINK, the operator of the UK’s largest ATM network, has established a number of initiatives to protect the broad geographic spread of free-to-use ATMs. LINK has committed to protecting free-to-use ATMs more than a kilometre away from the nearest free ATM or post office, and is held to account against this commitment by the Payment Systems Regulator.