Source · Select Committees · Public Accounts Committee
Recommendation 2
2
We are not convinced that the public bodies understand how declining access and acceptance of...
Recommendation
We are not convinced that the public bodies understand how declining access and acceptance of cash can adversely affect many people’s lives. Some consumers prefer to use or rely on cash—particularly the elderly and lower income groups; those in rural areas, where poor broadband and mobile coverage limits the viability of digital payments; and some community organisations, for example charities and churches. The public authorities do not seem to have a clear understanding of how difficulties in accessing cash or being able to use cash to pay for items affect people. For example, in some areas people in low income groups, who often prefer to use cash because it helps them with budgeting, may have little choice but to access cash through pay-to-use ATMs. These groups of people may well be left behind if the UK moves to a cashless society without intervention by public authorities. ATMs can be ‘protected’ in some areas, if there are no other ATMs or post offices within 1 kilometre, but this may not be a solution for all communities. The public authorities indicated to us that people could rely on post offices to access cash, but post offices will not always be open at times when people want to access cash, and we are aware of instances where local post offices have closed or are under threat of closure. 6 The production and distribution of cash Addressing the needs of people in different circumstances and geographic areas requires a well-informed and flexible approach. Recommendation: In undertaking their plan to secure continued access to cash, the government should set out how they propose to incorporate the concerns and requirements of different communities and groups to ensure that solutions actually meet local needs. The plan should set out what consumers, particularly those in vulnerable groups, can expect in terms of accessing and using cash in their locality.
Government Response
Not Addressed
HM Government
Not Addressed
2. 1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2021 2.2 As highlighted by the Committee, in recent years, the ongoing trend in payments in the UK has been away from cash and towards card payments and other digital payment methods. The government recognises that cash remains important to millions of people across the UK and there are a range of ways and reasons for people to use cash. These can include the importance of cash as a symbol of independence, as well as an important budgeting tool, and as a way that elderly or vulnerable people can access social opportunities. 2.3 The government has committed to protecting access to cash to ensure those that rely on cash are not left behind. To date, the PSR has used its regulatory powers to make sure LINK – the UK’s main ATM network - delivers on its public commitments to maintain the existing geographic spread of free-to-use ATMs. Furthermore, it has encouraged LINK to develop additional initiatives, such as LINK’s ATM Community Request scheme and Retail Centre Policy. Collectively, these actions help to ensure that communities, including those in remote and deprived locations, continue to have access to free-to-use machines. 2.4 The Call for Evidence on Access to Cash set out that the government considers that flexibility and proportionality will be important criteria to meet the needs of individuals and businesses, including those in vulnerable groups, and invited views from all stakeholders. The government is considering the responses and will seek to set out its next steps in due course.