"Protect cash by law - or it could be history in months"

[dutchman]

The Government is coming under increasing pressure to introduce legislation that will ensure nationwide access to cash and banking services



The Government is coming under increasing pressure to introduce legislation that will ensure nationwide access to cash and banking services. Such legislation was promised more than a year ago but has been delayed for a number of reasons including the pandemic.

Some experts now fear that unless the Government acts soon, the country's cash system could collapse within the next 12 to 24 months, leaving more than five million adults reliant on cash financially excluded. It would also be catastrophic for many small businesses that are still heavily dependent on cash sales.

Consumer group Which? says the Government should set out its plans in the Queen's Speech early next month. 'We're at a critical moment,' the organisation's Gareth Shaw told The Mail on Sunday yesterday. 'We need the Government to show us a roadmap that will safeguard consumers' access to cash, at a time when ATMs and bank branches are closing at record levels. Its intervention cannot come soon enough.'

The latest data from Which? indicates that 50 bank branches per month have shut on average since the beginning of 2015 with NatWest Group axing nearly 1,100. Simultaneously, many free-to-use cash machines have been taken out of service – one in four since 2018.

In some deprived areas where cash usage is widespread, free-touse ATMs have been replaced with fee-charging machines, resulting in vulnerable people being 'overcharged' for accessing their cash.

Baroness Tyler of Enfield told The Mail on Sunday: 'Access to cash was a problem in 2017. But now, with the pandemic, more bank and ATM closures and many retailers going cashless, it's a bigger issue than ever.'

She added: 'The current regulatory framework governing access to cash and banking services is not strong enough. The Financial Conduct Authority should be empowered to be more on the front foot when banks leave communities behind.

'Currently, the impression is that the banks pay lip service to customers' needs. That has to stop, which means regulation and a more proactive approach from the regulator.'