Recommendation 120

HM Government Rejected

The Government recognises that while digital innovation can help many to manage their finances, it can also exclude those who don’t have the means or capability to access online services. In 2025, the FCA reported that digitally excluded individuals are the most likely to be unbanked. This is why the remit of the access to banking sub-committee was established with a specific focus on digital inclusion to consider the barriers that consumers can face in accessing digital services, and the sector’s role in responding to these. HM Treasury continues to work closely with the Digital Inclusion and Skills Unit, part of the Department of Science, Innovation, and Technology (DSIT), on the Government’s wider digital inclusion priorities to address the barriers beyond financial services which can affect those who are digitally excluded. It is estimated that 1.6 million people in the UK are currently living offline7 and around a quarter of the UK population have the lowest level of digital capability, meaning they are likely to struggle to use online services. The Government has recently published the Digital Inclusion Action Plan which sets out the first steps we are taking towards ensuring that everyone, regardless of age, ethnicity, ability and social class, and across all regions and nations of our economy, has the access, skills and confidence to participate in, and benefit from, a modern digital society. This work includes a focus on boosting digital skills and confidence, and widening access to devices and connectivity, and is an important step in the Government’s Mission of kickstarting economic growth; promoting digital inclusion can enhance job opportunities, increase earning potential, and drive productivity and efficiency. The Government’s commitments to inclusion are reflected in the National Payments Vision, which sets an ambition for a trusted, world-leading payments ecosystem delivered on next generation technology, where consumers and businesses have a choice of payment methods to meet their needs. The Vision also welcomed the Garner Review recommendation to continually monitor the risk of financial exclusion through digital exclusion, including through the FCA’s Financial Lives Survey. The Government agrees with the Committee on the importance of reviewing internally and externally produced evidence, recognising that customer preferences and payment trends continue to evolve. The Government already considers a range of existing data sources to monitor the state of financial inclusion across the country, including data from the FCA and the Bank of England. Research by the Bank of England shows that, where a consumer did encounter a store that did not accept cash, only 6% were unable to purchase the item they wanted with the majority able to use an alternative payment method. Evidence from the British Retail Consortium8 and the Association of Convenience Stores9 demonstrates that retail cash acceptance remains high. By continually reviewing data and engaging with stakeholders, the Government is able to make informed decisions on how to best support the needs of businesses and consumers, including those at risk of digital or financial exclusion. As a result, the Government does not believe there is a need to review data every five years, and instead it will continue to carefully evaluate available data on an ongoing basis.