Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of using existing community infrastructure, including Post Office branches, to support access to cash and everyday banking transactions.

The Government recognises the importance of cash, understanding that it continues to be used by millions of people across the UK, including charities, churches, voluntary organisations and community groups to support communities across the UK, and is committed to protecting access to cash for individuals and businesses.

The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Its rules ensure cash continues to be a viable method of payment for the millions of people who depend on it by providing reasonable access to cash withdrawal and deposit facilities for individuals and businesses, including free services for personal accounts. 

In addition to access to cash, the Government is committed to ensuring that people who need in-person banking can continue to access essential services. That is why the Government commissioned an independent Review into Access to Banking Services, to assess whether changes to access to in-person banking services are causing consumer detriment and the scale of any detriment.

As part of this, the Review will consider existing forms of in-person banking provision, including those available in the Post Office. Under the Banking Framework, a commercial agreement with 30 banking firms, most personal and business customers can withdraw and deposit cash, check their balance, pay bills and cash cheques at over 10,000 Post Office branches across the UK, subject to each bank’s service arrangements.

Alongside the Review, the Financial Services and Markets Bill includes a power to allow the Government to take action in future to protect access to banking services, should this be necessary. This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the Review supports intervention.