Question to the HM Treasury:

To ask His Majesty's Government whether they intend to introduce a statutory right to pay for goods and services in cash; and if so, whether this would be subject to financial limits.

The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups. UK Finance estimates around 1.5 million people pay mainly or solely with cash, many of these on low or fixed incomes. It is vital that cash remains a viable method of payment for those who rely on it.

The Financial Conduct Authority has recently assumed regulatory responsibility for protecting access to cash, and its new rules went live on 18 September. The rules require the UK’s largest banks and building societies to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.

Whilst it is for each business to decide on the forms of payment it chooses to accept, the Government welcomes the work of the regulators to monitor cash acceptance. For example, research published by the Financial Conduct Authority found that 98 per cent of small businesses surveyed would never turn customers away if they needed to pay in cash. The new rules by the Financial Conduct Authority will also support businesses to accept cash by ensuring they have reasonable access to deposit facilities.

Many banking customers also benefit from the ease and convenience of online or mobile banking and payments. The Government recognises that promoting digital inclusion is essential to building the skills and confidence people need to participate in a modern digital economy and is considering barriers to this. In addition, the Government is committed to championing sufficient in person banking for all as a priority, including those who are reliant on cash.

This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this parliament. These hubs provide individuals who need face-to-face support with critical cash and banking services, including support with using digital banking.