Even though the UK is moving further away from using cash and coins and increasingly relying on online payment methods, I believe that it is important that we give people a choice with how to use their money. That’s why I was proud to support the Financial Services and Markets Act 2023 at every stage, ensuring that no-one is more than three miles away from a cash withdrawal point.
As part of this move, the Financial Conduct Authority (FCA) has been provided new powers by the government to protect the provision of cash access services. This includes protecting cash access without any fees for those who hold personal current accounts. The FCA will use these newfound powers to make sure banks and building societies are keeping up to these standards – and have the power to fine them if they do not.
The FCA is also required to ‘have regard’ to local deficiencies in cash access. The policy statement sets out that the regulator should consider factors such as the opening hours and distance to cash access services, as well as the need for in-person assistance. Providers now must also take into account local needs before shutting down withdrawal services in a given area. If a service is withdrawn and a replacement service is needed – this should be put in place before the closure takes place.
Introduced by the last Conservative Government, these new rules came into effect in September 2024. The FCA will formally review the effectiveness of these new rules in late 2026/27.
ATMs
- Key findings of a report led by the University of Bristol in partnership with the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR), are: Free access to cash is readily available on almost all (99 per cent) of UK high streets within 500 metres. Just over three-quarters (77 per cent) of neighbourhoods have some form of free access to cash within 500m.
- At present, LINK, the scheme responsible for ATM provision in our country, provides a top-up subsidy for free-to-use ATMs in remote areas. I was glad to hear that the upper limit on these top-up subsidies rose from 30 pence to £2.75.
- LINK has promised to protect free ATMs more than one kilometre away from the next nearest free ATM or Post Office.
- LINK has also committed to protecting free access to cash on high streets that do not have a free-to-use ATM or Post Office counter within one kilometre.
- This is expected to benefit up to 3,500 free-to-use ATMs across the country. I also welcome that, as of September 2019, there were approximately 45,000 free-to-use cash machines across the UK, which represents a 13 per cent increase from a decade ago.
Bank Branches
- It is vital that all customers, wherever they live, can still access over-the-counter services. I am glad the last Conservative Government supported the Post Office’s relationship with the banks. An agreement enables 99 per cent of banks’ personal customers, and 95 per cent of banks’ business customers, to withdraw cash, deposit cash and cheques, and make balance enquiries at a Post Office counter across a network of 11,600 branches.