Covid-19: Access to and Acceptance of Cash Debate
Full Debate: Read Full DebateSarah Owen
Main Page: Sarah Owen (Labour - Luton North)Department Debates - View all Sarah Owen's debates with the HM Treasury
(3 years, 8 months ago)
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It is a pleasure to serve under your chairship, Mr Mundell, and shortly under the chairship of my hon. Friend the Member for Makerfield (Yvonne Fovargue). I thank the Backbench Business Committee for finding the time to put this issue on the parliamentary agenda. This is a 90-minute debate, but for me and, I think, the public the issue is really straightforward: people should not be charged to access their own money. It really is as simple as that.
Data from the GMB union—I declare an interest as a member—found that access to free cash in my constituency had fallen by 46% since 2018, one of the top five biggest falls in free cash machines across the UK. Let us call that what it is—a stealth tax on the most vulnerable and those on the lowest incomes. Low income is the biggest indicator of cash dependence. Lower-income households are less likely to have access to digital infrastructure and more likely to use cash, for budgeting reasons. Older constituents contacted me during the pandemic, concerned that they could not pay with cash. We know that older people are less likely to be able to access banking digitally. Those people literally cannot afford to be left behind.
[Yvonne Fovargue in the Chair]
From an accessibility standpoint, a range of health problems may make it more difficult to use digital payments. Cognitive difficulties may make it challenging to remember a PIN—particularly if my child has kept me up all night and I really struggle to remember which PIN is which. Those with certain visual impairments may prefer the tactile nature of cash. Those with mental health problems may not trust digital payments, or may find it more difficult to control compulsive spending, affecting some people living with bipolar disorder or with gambling addiction, for example.
The pandemic has changed everyone’s way of life completely, and I entirely understand that, for now, we need to do everything we can to slow the spread of the virus. However, as businesses adjust to the new normal I will be pleading to allow the safe return of cash payments, because so many people would still like that option, and so many depend on it. Like many industries right now, the cash industry has been hit hard, as the number of cash withdrawals halved during the initial weeks of the covid crisis. However, this crisis was long in the making, with figures from Which? from February 2020 showing that 1,200 bank branches and 9,500 free-to-use ATMs were lost in 2018. That is having a real impact in Luton North. We are losing bank branches, with Barclays—around the corner from me, on Marsh Road—the latest to announce plans to go. When I went there last week, the queues were 15 people deep, 2 metres apart. That bank branch is well used and needs to be saved.
The industry is now on a knife edge. G4S, which operates some cash-handling services, is threatening more than 1,000 jobs with restructuring plans, and Loomis has announced 300 redundancies. When do the Government plan to bring forward the legislation promised in March to protect the cash industry? Will it include protections not only for accessing cash but for accessing free cash? My constituents are already some of the most overcharged in the country for getting at their own money. My constituents need the legislation to offer a legal right to pay for goods and services in cash, especially essential goods and services. Can the Government pledge that any legislation will ensure the availability of cashback from medium and large retailers? I ask the Minister to ensure the Government keep their promise and do more to back this vital industry and make progress towards ending this stealth tax on low incomes.