Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the report entitled UK Payment Markets Report, published by UK Finance in July 2024, what discussions she has had with (a) Cabinet colleagues, (b) financial institutions and (c) business groups on (i) trends in the numbers of and (ii) support for UK adults who mainly use cash for transactions.

While the ongoing trend in payments in the UK has been away from cash and towards digital payment methods, the government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups or who otherwise rely mainly on cash. In May 2022, the Financial Conduct Authority’s (FCA) Financial Lives Survey estimated that 3.1 million people paid for everything in cash over the previous year.

In recognition of the importance of cash access, it has been protected in UK law. The Financial Services and Markets Act 2023 provides the Financial Conduct Authority (FCA) with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities, with reference to the government’s stated objectives for protecting cash access as set out in a government Policy Statement. The FCA must also seek to ensure that there is reasonable provision of free withdrawal and deposit facilities in relation to personal current accounts, so that those who rely on cash are protected.

In July 2024, the FCA published its final rules setting out its approach to regulating access to cash, which come into force on 18 September.