Rachel Hopkins
Main Page: Rachel Hopkins (Labour - Luton South and South Bedfordshire)Department Debates - View all Rachel Hopkins's debates with the HM Treasury
(3 years, 2 months ago)
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Rachel Hopkins (Luton South) (Lab)
It is a pleasure to serve under your chairship, Mrs Miller. I congratulate my hon. Friend the Member for Pontypridd (Alex Davies-Jones) on securing this important debate.
We have heard much about how the pandemic has accelerated the trend in consumers moving away from using cash and towards digital payments, but cash is still critical for many people and local small businesses. If someone is on a low income, has a physical or mental health problem, is financially excluded, has poor digital connectivity, struggles with budgeting or lives in areas where local shops do not take cards, they will be disadvantaged by the continued reduction in access to cash.
Cash appears to have declined less in constituencies with higher deprivation, such as mine, during the pandemic. Protecting cash is an important sticking plaster. While total reliance on cash is due to wider structural issues such as a lack of digital access—whether that is due to a lack of physical devices or data or due to language—if that access continues to decline, vulnerable people will be at risk of being left further behind.
Between 2018 and 2019, the number of free-to-use ATMs fell by 13%, and the number of pay-to-use machines rose by 38%. According to LINK, in Luton South the number of free-to-use ATMs has reduced by 30% in three years from 140 to 98, with the total number of ATMs reducing by 16%. We cannot allow the creation of cash deserts where consumers cannot access cash. The Treasury’s 2019 access to cash review found that 47% of the population would find it problematic if there was no cash in society.
Finally, there is the issue of managing personal finances and the huge increase in personal debt. I have heard much about that from the Luton citizens advice bureau and from the debt advisers who work in the Salvation Army in Luton South. People who are pushed into using cards, digital or contactless find it less easy to manage their money, particularly if they are on low incomes or are vulnerable, as I have already said. They trip into increasing their personal debt. Perhaps the Minister will tell us what analysis has been done on the decrease in cash use and the increase in the preference for digital, and on the impact of the increase to £100 in contactless payments? What impact has there been on rising personal debt? I thank my hon. Friend for securing this debate.