Access to cash
Access to cash remains important to the daily lives of many people across the UK. In its Financial Lives 2020 survey , the FCA found that there are an estimated 5.4 million adults (10%) who report as reliant on cash to a very great or great extent in their day-to-day lives. Meanwhile the use of alternatives, such as cards and digital payments, is not yet a realistic option in some situations or for many people who still rely on notes and coins.
	The use of cash by individuals and businesses is enabled through access to suitable cash withdrawal and deposit facilities. Examples of these may include, but are not limited to, a cash withdrawal from an ATM or cash machine, cashback, or an over-the-counter cash withdrawal or deposit at a bank branch or Post Office. Therefore, the government wants to ensure that the provision of cash access facilities continues to provide appropriate coverage across the UK to meet the cash needs of consumers and businesses.
	To date, the market has provided sufficient cash access to support people’s use of cash. Over the past decade the UK has witnessed a decline in the use of cash towards card and other digital payment methods. This has made it relatively more expensive for firms to maintain the existing infrastructure needed for current levels of access to cash to continue. In response, firms have consolidated their cash facilities in recent years.
	Whilst the current level of access to cash coverage across the UK is extensive, the government considers the decline in cash usage and the number of cash facilities to pose risks to the future provision of access to cash.
	At present, there is no existing substantive legislative framework relating to minimum or reasonable levels of access to cash, and no single authority has overall responsibility for overseeing the maintenance of a well-functioning UK cash system for the benefit of customers. Furthermore, no regulator currently has express powers to ensure that a cash withdrawal or deposit facility is in place to support access to cash.
	At Budget 2020, the government committed to introduce a legislative framework to protect access to cash for those who need it. The government issued a Call for Evidence in October 2020 on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. On 1st July 2021, the government published its response to the Call for Evidence alongside a consultation which sought views on legislative proposals to protect access to cash.
	On 19 May 2022, the government published a summary of responses to the consultation confirming its approach to legislating. This set out the government’s intention to establish the Financial Conduct Authority (FCA) as the lead regulator for retail cash access and provide it with appropriate powers for ensuring that specified firms, i.e. banks and building societies as designated by HM Treasury, continue to ensure the reasonable provision of deposit and withdrawal facilities across the UK. The FCA’s powers will allow it to address cash access issues at both a national and local level.
	Since the government’s consultation, significant steps have been taken by industry to improve coordinated efforts by firms to meet cash access needs. In December 2021, the financial services sector announced that it had developed a voluntary industry model for the provision of cash access facilities, including initiatives to provide shared services. Under the model, an industry coordination body assesses the cash needs of local communities with a view to ensuring appropriate cash services are in place. In light of these developments, and the significant role that such coordination arrangements may play in the future of cash provision, the summary of responses to the consultation also set out the government’s intention to also enable HM Treasury to designate the operators of such arrangements for FCA oversight.