Recommendations & Conclusions
14 items
1
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
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 …
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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 Scotland. We welcome the Minister’s recognition of the need for a more detailed picture of cash usage in Scotland, and it is important that this more detailed data be used to inform the Government’s legislative proposals.
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Government response AI summary
The government referenced data from LINK indicating that the proportion of free-to-use ATMs has increased in Scotland and that cash use remains higher than the UK average.
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Scotland Office
2
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
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 …
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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 legislation. While innovation in digital payments is welcome, Government action is required to ensure nobody is excluded from an increasingly digital economy.
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Government response AI summary
The government acknowledges the Cash Action Group's initiatives and states that the legislation allows HM Treasury to designate industry coordination bodies for FCA oversight.
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Scotland Office
3
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
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 …
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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 will be set out in the Financial Services and Markets Bill.
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Government response AI summary
The government acknowledges the committee's welcome of the legislation to protect access to cash and states that the Financial Services and Markets Bill 2022 has been introduced to Parliament.
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Scotland Office
4
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
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.
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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.
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Government response AI summary
The government recognized the importance of transacting in cash, but maintained that it should remain the choice of individuals and organizations as to whether to accept cash or card.
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Scotland Office
5
Conclusion
Second Report - Access to cash in Scotl…
Not Addressed
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.
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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.
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Government response AI summary
The response focuses on the availability of ATMs and cash usage in Scotland, but does not address the specific request for data held by the UK Government on businesses accepting cash as a means of payment.
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Scotland Office
6
Recommendation
Second Report - Access to cash in Scotl…
Rejected
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 …
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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 cash, the UK Government should introduce additional protections to ensure that consumers reliant on cash are not disadvantaged.
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Government response AI summary
The government declined to ask the FCA to investigate cash acceptance levels, stating that it should remain the choice of individuals and organizations as to whether to accept cash or card.
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Scotland Office
7
Conclusion
Second Report - Access to cash in Scotl…
Not Addressed
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 …
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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 needs of customers and ensure services are available are inadequate to prevent unnecessary closures. We expect the Financial Conduct Authority to carefully monitor the quality of the analysis used by banks to justify branch closures. Furthermore, while we do not expect the Government to 28 Access to cash in Scotland intervene in genuine commercial decisions, we believe there is a case for action if banks are closing branches purely to pre-empt the legislative intent established in the Queen’s Speech. (Paragraph 47) ATM network
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Government response AI summary
The government repeated the committee's conclusion verbatim, without adding any further response or information.
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Scotland Office
8
Recommendation
Second Report - Access to cash in Scotl…
Accepted in Part
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 …
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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 issue of such importance should be left to voluntary agreements which ultimately leaves them vulnerable and reduces certainty over the future of free access to cash in Scotland. Future legislation should therefore complement the industry- led initiatives, such as the Financial Inclusion Programme, and build on these to guarantee free access to cash for as long as it is needed.
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Government response AI summary
The government did not commit to future legislation guaranteeing free access to cash but referred to legislation that allows HM Treasury to designate industry coordination bodies for FCA oversight, which could play a role in the future of cash provision.
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Scotland Office
9
Recommendation
Second Report - Access to cash in Scotl…
Rejected
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 …
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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 the UK Government consider legislating in the Financial Services and Markets Bill to mandate the membership of LINK for card issuers and ATM operators to ensure that the Financial Inclusion Programme can continue to provide free access to cash for as long as it is needed.
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Government response AI summary
The government stated that it's not their intention for the Bill to determine how industry provides access to cash facilities; instead, the Bill provides the FCA with powers to ensure reasonable provision of access to cash withdrawal and deposit facilities.
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Scotland Office
10
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
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 AI summary
The government referenced industry efforts to improve coordinated efforts to meet cash access needs, including Cash Action Group commitments to provide shared bank hubs and deposit solutions, and noted FCA oversight.
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Scotland Office
11
Recommendation
Second Report - Access to cash in Scotl…
Acknowledged
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 …
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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 a working group with industry to introduce network-wide deposit- taking ATMs. The rapid rate of bank branch closures and the growing rate of fee- charging ATMs brings into sharp relief the necessity for deposit-taking ATMs to be introduced in areas of greatest need. (Paragraph 67) Post Office
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Government response AI summary
The government referenced industry efforts to improve coordinated efforts to meet cash access needs, including Cash Action Group commitments to provide shared bank hubs and deposit solutions, and noted FCA oversight.
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Scotland Office
12
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
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.
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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.
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Government response AI summary
The government expressed support for the Banking Framework agreement and the Post Office's role, highlighting funding provided to the Post Office and referencing a new agreement with the sector.
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Scotland Office
13
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
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 …
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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 consequences for millions of people and businesses that rely on cash. An issue of such importance should not be left to voluntary agreements.
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Government response AI summary
The government expressed support for the Banking Framework agreement and the Post Office's role, but stated that it is not for the government to negotiate the details of commercial contracts and highlighted funding provided to the Post Office.
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Scotland Office
14
Recommendation
Second Report - Access to cash in Scotl…
Accepted
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. …
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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. (Paragraph 80) 30 Access to cash in Scotland
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Government response AI summary
The government states it remains supportive of the Banking Framework agreement and highlights the Post Office's new agreement with the sector, as well as government funding for the Post Office network.
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Scotland Office