Access to Cash

Debate between Martin Docherty-Hughes and Alex Davies-Jones

Wednesday 20th October 2021 Westminster Hall

[Alex Davies-Jones (Pontypridd) (Lab)]

I beg to move,

That this House has considered access to cash.

It is a pleasure to serve under your chairship, Mrs Miller. Given recent events, I feel it is important to take a moment to pay tribute to our wonderful colleague, Sir David Amess, who was a regular contributor to Westminster Hall debates. His presence here will forever be missed.

I am pleased to have secured this debate, particularly as our ability to physically access cash has been restricted as we continue to tackle coronavirus, and given the recent increase to the contactless card spending limit from £45 to £100.

I come to this debate with a specific constituency interest in mind. One of the jewels in the Pontypridd crown is the Royal Mint, based in Llantrisant. It is a major local employer, and I must give its tourist attraction, the Royal Mint Experience, a quick plug. The Royal Mint is the manufacturer of UK coins, and is not directly involved in policy on the use of cash, but it is a key contributor to ensuring that certain skills, and the capability to circulate coins, still exist in this country. I was joined there by the Under-Secretary of State for Wales, the hon. Member for Monmouth (David T. C. Davies), only a few months ago; we struck coins, and met young people on the kickstart scheme. I will, however, try to refrain from reminding the Minister that despite all the country’s coins being made in my constituency, we sadly see precious little money in return from the Government. Perhaps that is a matter to be discussed another time.

Instead, I will focus on the sad, widespread repercussions of reduced cash flow, which is having a major impact on high streets up and down the country. Many have been hit by multiple bank closures, including in my constituency of Pontypridd and across Caerphilly. Banks not only provide vital services for a huge range of community groups, but are often the epicentre of our high streets, and are vital in encouraging local trade and footfall for surrounding businesses.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

In West Dunbartonshire, we have seen a huge decrease in the number of banks, and I congratulate the hon. Member on making that point. Do they agree that if we are moving to a cashless society, that cannot happen in a vacuum, and that the Government must step up to ensure that people have access to cash in local communities?

[Alex Davies-Jones]

I completely agree. It is vital that the Government step up to ensure that this transition to a cashless society—if that is where we are heading, which seems to be the case—is made quickly. I will return to this point later, but I must begin by placing on the record my gratitude to all the organisations that have supported me and my team in preparing for this debate, notably the team at the LINK group, who have assisted with many of the stats I will refer to; I am particularly grateful to them for their expertise. In addition, Cardtronics found time to advise us on the potential repercussions of losing more and more free-to-use ATMs, for which I am thankful.

Put simply, when it comes to how we access and spend cash, it is clear that our habits as a nation are changing. In my household, physical cash is essentially non-existent, and I often actively avoid carrying cash. In a world where tools such as Apple Pay mean that I can pay with my phone, my watch, or even just my face, carrying a large amount of cash seems to add an element of risk, and it ultimately feels largely unnecessary.

This stands in stark contrast to my attitude towards cash when I was growing up. I still remember the genuine thrill I felt as a youngster when I received what I suppose would be considered a wage for completing my household chores. That £3 per week felt like my ticket to freedom, and I loved to collect my pounds and pennies in my piggy bank, all to be spent, no doubt, in one go on something like Bliss magazine, the latest Tamagotchi or Steps’ latest single. This fondness and nostalgia for the Great British pound is widespread. According to the access to cash review interim report, “Is Britain ready to go cashless?”, despite the increasing use of cards and electronic payments, approximately 8 million people, which is 17% of the country, said that cash feels like an economic necessity.

For me, years down the line, I have changed not only my spending habits, but my attitude to cash. What was once seen as an exciting physical representation of my earnings is now something I tend to actively avoid. However, I recognise that plenty of people feel completely differently, with many preferring to use cash for security or cash management reasons. It is important to acknowledge that when we talk about access to cash, acceptance of cash is part of that debate as well. That is where the marked difference between the needs of those living in my semi-rural constituency of Pontypridd and those in inner-city dwellings becomes even more obvious.

In London, it is not uncommon for businesses to be entirely cashless. That is in stark contrast with the many small businesses in my community that rely on cash payments, due to the cost or impracticalities of accepting card transactions. I am pleased that there appears to be widespread support for the preservation of free-to-use ATMs, which are vital for protecting access to cash.