Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the access to cash in rural areas for (1) vulnerable residents, such as the elderly and infirm, and (2) small businesses.

The government recognises that while the transition towards digital banking and payments brings many opportunities, cash continues to be used by many people, including those who may be in vulnerable groups, and small business across the UK.

The Financial Conduct Authority (FCA) has a considerable evidence base on cash provision and use across the UK. Analysis that was published by the FCA in June 2022 shows that, as of the end of 2021, over 95% of the population are within two kilometres of a free-to-use cash access point, such as a free-to-use ATM, bank branch or Post Office branch. Additional breakdowns by category of cash facility and areas are published on the FCA’s website.

The government is currently taking legislation to protect access to cash across the UK through Parliament as part of the Financial Services and Markets Bill 2022. The legislation will establish the FCA as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.

As part of its responsibilities, the FCA will be granted powers to seek to address any local deficiencies in the provision of access to cash facilities that it has identified and considers to be significant. The government’s view is that this will allow for consideration of local circumstances in all parts of the UK. This will result in a regulatory framework that will support the ongoing assessment of cash needs and provision at both a nationwide and local level.