Source · Select Committees · Treasury Committee
Recommendation 119
119
Accepted
Cash remains essential for vulnerable groups, as digital solutions may not ensure full financial inclusion.
Conclusion
Cash is an enduring payment method that many people prefer to use and on which people who do not have equal access to non-cash payment methods rely. Although technology may progress further and reduce the number of people who rely on cash, demand for physical cash will always exist. The Government’s focus on reducing digital exclusion as part of the work of the Financial Inclusion Committee is welcome, but digital products and services may not fully solve the problem. Developing solutions to financial exclusion must include an examination of all potential options, especially where vulnerable groups face specific problems. For a significant minority of people, that risk entails not only inconvenience but partial exclusion from society. The cost will be borne by vulnerable minorities, including people in poverty, people struggling to escape domestic abusers and people with learning difficulties. (Conclusion)
Government Response Summary
The government recognises the importance of cash for vulnerable groups and commits to publishing a Financial Inclusion Strategy later this year, which will include a committee to examine barriers to accessing appropriate financial products and services.
Government Response
Accepted
HM Government
Accepted
The Government recognises the importance of cash for the millions of people across the UK who continue to use it, including those who may be in vulnerable groups or face difficulties in accessing alternative payment methods. Cash continues to play an integral role in the UK’s payments ecosystem and the Government is committed to ensuring consumers and businesses have a choice of payment methods to meet their needs. Furthermore, ensuring individuals have access to the appropriate financial products and services they need is a key priority for the Government. This is why I have committed to publish a Financial Inclusion Strategy later this year, alongside a supporting committee of consumer and industry representatives, which will examine the barriers consumers face to accessing products and what more industry and the Government can do to address them.