Yvonne Fovargue
Main Page: Yvonne Fovargue (Labour - Makerfield)Department Debates - View all Yvonne Fovargue's debates with the HM Treasury
(3 years, 1 month ago)
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Yvonne Fovargue (Makerfield) (Lab)
It is pleasure to serve under your chairmanship, Mrs Miller. I congratulate my hon. Friend the Member for Pontypridd (Alex Davies-Jones) on securing the debate.
Cash may no longer be king, but it is still pretty royally used. Its use did drop during the pandemic, but NatWest says that cash use is now at 75% of pre-covid levels. There were 35 million separate cards used to withdraw cash in August. The average adult withdrew £1,500 in 2020.
After the last debate, I received two letters. I received one from an older lady, who said that the online she had ever used was a washing line, and she certainly did not want to know any more about it. I also had a letter from a young mum who relied on cash. She said that she used cash so that she did not overspend: she could not spend any more than she had in her purse.
People worry about safety and security. What happens if connectivity drops? What about the security of the physical card, particularly with the £100 limit? What about internet scams, fraud or card details being stolen? Some 15% of people still prefer cash to budget when shopping, and 28% worry about fraud risks. Post offices can help, but, with post office closures and the difficulty of getting people to take on post offices, they are not the answer any more.
As we have heard, it is also about where you can spend your money. The pandemic has led to more refusals. There was an attitude that cash is a bit dirty, and that was used as an excuse. In June, almost one in five people had cash refused by a business, and the majority of businesses said refusals were due to covid. We have to get away from that attitude. People still want to pay with cash: 81% want a range of payment options, including cash, and 24% would not shop at a business that did not take cash. It is vital to keep that choice. I commend the Which? cash pledge campaign to encourage businesses to sign up to accepting cash.
We cannot move to a two-tier society in which some people have the choice of any shop and others have their choice restricted. It is no good having cash available if the only local shop one can reach does not accept it. If cash acceptance is not going to be voluntary, we need legislation. I would like to know when the result of the White Paper consultation will be published. Is there a role for the Financial Conduct Authority in ensuring access? Although 90% of people will have access within 1 km, what about the 10% who will not? Who ensures that access? We need the legislation as well.
It is more and more urgent. Every day it becomes more difficult to row back. While cashlessness might suit many people, we cannot leave people behind. We cannot railroad them into accepting something that does not suit their needs. We cannot sleepwalk into a cashless society. As the song goes,
“you don’t know what you got til it’s gone”.