Recommendations & Conclusions
14 items
1
Conclusion
Second Report - Access to cash in Scotl…
We recognise that the Government does not want to intervene in the detail of commercial decisions. However, we are concerned that a lack of data on cash usage in Scotland means Ministers have not had a clear picture of the implications of bank branch and ATM closures on communities in …
Government response. Related to this recommendation, the Committee’s report reflects on the availability of data relating to cash in Scotland. According to further information provided by LINK, as of June 2022 there were over 5,000 ATMs in Scotland and the proportion of …
Scotland Office
2
Conclusion
Second Report - Access to cash in Scotl…
We welcome recent initiatives announced by the Cash Action Group to ensure free access to cash in the absence of legislation. However, considering the scale of the population which remains reliant on cash, and likely will do so for the foreseeable future, this does not negate the vital need for …
Government response. In anticipation of the Government’s legislation, significant steps have been taken by industry to improve coordinated efforts by firms to meet cash access needs. In December 2021, the Cash Action Group announced that it had developed a voluntary industry model …
Scotland Office
3
Conclusion
Second Report - Access to cash in Scotl…
We welcome the Government’s commitment to legislating to protect access to cash. However, we are disappointed about the extended period of time it took the UK Government to announce the legislation, considering the urgency of the issue. We look forward to seeing how specific safeguards to protect access to cash …
Government response. Since the publication of the Committee’s report, the Government has introduced legislation to Parliament to protect access to cash as part of the Financial Services and Markets Bill 2022. As the Bill is considered by Parliament I look forward to …
Scotland Office
4
Conclusion
Second Report - Access to cash in Scotl…
The reported increase in the number of retailers refusing to accept cash could significantly inhibit the ability of people who either rely on cash, or choose to use it as their preferred payment method, to participate in the economy and access goods and services.
Government response. I note the Committee’s recommendation on cash acceptance. The Government recognises that the ability to transact in cash remains important to millions of people across the UK, and engages closely with the financial regulators to monitor and assess trends relating …
Scotland Office
5
Conclusion
Second Report - Access to cash in Scotl…
There seems to be limited general data in relation to businesses accepting cash as a means of payment. It would be helpful for us to know how much data the UK Government holds on this, particularly in the context of higher inflation and increases in the cost of living.
Government response. Related to this recommendation, the Committee’s report reflects on the availability of data relating to cash in Scotland. According to further information provided by LINK, as of June 2022 there were over 5,000 ATMs in Scotland and the proportion of …
Scotland Office
6
Recommendation
Second Report - Access to cash in Scotl…
We believe the issue of cash acceptance in a retail setting requires further investigation. We recommend that the UK Government should consider asking the Financial Conduct Authority (FCA) to investigate and monitor cash acceptance levels across the UK. If the FCA find a substantial number of retailers refusing to accept …
Government response. I note the Committee’s recommendation on cash acceptance. The Government recognises that the ability to transact in cash remains important to millions of people across the UK, and engages closely with the financial regulators to monitor and assess trends relating …
Scotland Office
7
Conclusion
Second Report - Access to cash in Scotl…
We are of the opinion that the current rapid rate of bank branch closures may have come about as a result of banks rushing to close branches before legislation to protect access to cash and banking services can take effect. We are concerned that the existing mechanisms to analyse the …
Government response. We are of the opinion that the current rapid rate of bank branch closures may have come about as a result of banks rushing to close branches before legislation to protect access to cash and banking services can take effect. …
Scotland Office
8
Conclusion
Second Report - Access to cash in Scotl…
We welcome industry-led initiatives, such as LINK’s Financial Inclusion Programme, to provide free access to cash via free-to-use ATMs in the most rural and deprived areas of the UK. This is especially important in Scotland considering the physical and digital connectivity challenges it faces. However, it is unacceptable that an …
Government response. In anticipation of the Government’s legislation, significant steps have been taken by industry to improve coordinated efforts by firms to meet cash access needs. In December 2021, the Cash Action Group announced that it had developed a voluntary industry model …
Scotland Office
9
Recommendation
Second Report - Access to cash in Scotl…
We recommend that the UK Government should clarify their position on how the Financial Services and Markets Bill will interact with pre-existing industry-led solutions such as LINK’s Financial Inclusion Programme. Currently, LINK’s Financial Inclusion Programme is reliant on the voluntary membership of card issuers and ATM operators. We recommend that …
Government response. In anticipation of the Government’s legislation, significant steps have been taken by industry to improve coordinated efforts by firms to meet cash access needs. In December 2021, the Cash Action Group announced that it had developed a voluntary industry model …
Scotland Office
10
Conclusion
Second Report - Access to cash in Scotl…
Deposit-taking ATMs would provide a valuable service to consumers and SMEs in Scotland that have lost their bank branches, while assisting in the sustainability of the ATM network and the long-term provision of cash in Scotland.
Government response. In anticipation of the Government’s legislation, significant steps have been taken by industry to improve coordinated efforts by firms to meet cash access needs. In December 2021, the Cash Action Group announced that it had developed a voluntary industry model …
Scotland Office
11
Conclusion
Second Report - Access to cash in Scotl…
Attempts to introduce deposit-taking ATMs for both consumers and SMEs have been constrained by a considerable lack of progress from both the banking industry and the UK Government. Considering the strength of the evidence to support their introduction, we repeat our predecessor Committee’s recommendation that the UK Government set up …
Government response. In anticipation of the Government’s legislation, significant steps have been taken by industry to improve coordinated efforts by firms to meet cash access needs. In December 2021, the Cash Action Group announced that it had developed a voluntary industry model …
Scotland Office
12
Conclusion
Second Report - Access to cash in Scotl…
The Post Office play a substantial role in the provision of free access to cash for communities across Scotland. We commend the positive action taken by both the banking industry and the Post Office to increase the availability of banking services in Post Offices in Scottish communities.
Government response. The Government remains fully supportive of the Banking Framework agreement, which allows 99% of personal banking and 95% of business customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches across the UK. …
Scotland Office
13
Conclusion
Second Report - Access to cash in Scotl…
Despite the efforts taken by the banking industry and the Post Office, the current cash infrastructure is fragile, and the Banking Framework Agreement is ultimately short-term and voluntary. A decision by any of the major banks to withdraw from Access to cash in Scotland 29 the agreement would have far-reaching …
Government response. The Government remains fully supportive of the Banking Framework agreement, which allows 99% of personal banking and 95% of business customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches across the UK. …
Scotland Office
14
Recommendation
Second Report - Access to cash in Scotl…
Building on the structure and objectives of the Banking Framework Agreement, we recommend that the UK Government seek a long-term commitment from banks to maintain appropriate banking services for their customers using the Post Office network, to guarantee access to cash and basic banking services for all communities in Scotland. …
Government response. The Government remains fully supportive of the Banking Framework agreement, which allows 99% of personal banking and 95% of business customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches across the UK. …
Scotland Office