Access to cash in Scotland

Scottish Affairs Committee Closed Inquiry
Opened: 12 Jan 2022 Closed: 3 May 2023 Parliament page
The non-inquiry sessions will focus on access to cash and financial services in Scotland. The non-inquiry sessions are likely to: Understand the impact of bank branch closures on Scottish communities and workers Assess measures to ensure access to cash for consumers in Scotland Analyse the viability of alternatives to ATMs … Read more
5 Recommendations
9 Conclusions
1 Report
3 Oral sessions
7 Letters
5 Events
Activity timeline 17 events
19 Oct
2022
Report published
17 Oct
2022
Formal meeting (private meeting) · Room 15, Palace of Westminster
11 Jul
2022
Report published
5 Jul
2022
Formal meeting (private meeting) · Room 5, Palace of Westminster
20 Jun
2022
Correspondence
20 Jun
2022
Correspondence
14 Jun
2022
Correspondence
23 May
2022
Oral evidence
23 May
2022
Formal meeting (oral evidence session) · Room 5, Palace of Westminster
7 Mar
2022
Correspondence
7 Feb
2022
Oral evidence
7 Feb
2022
Formal meeting (oral evidence session) · Room 6, Palace of Westminster
Oral evidence sessions 3 sessions
23 May 2022
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John Glen · HM Treasury Laura Mountford · HM Treasury
7 Feb 2022
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Carol Anderson · TSB Fergus Murphy · Virgin Money UK Martin Kearsley · Post Office Reza Attar-Zadeh · Santander UK Ricky Diggins · Lloyds Banking Group
17 Jan 2022
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Adrian Roberts · LINK David Postings · UK Finance Debbie Hutchings · Unite the Union Richard Cooper · Cardtronics Division Richard Piggin · Which?
Title HC No. Published Items Response
Second Report - Access to cash in Scotland HC 80 11 Jul 2022 14 Responded
Recommendations & Conclusions
14 results
1 Conclusion Acknowledged
Second Report - Access to cash in …
We recognise that the Government does not want to intervene in the detail of commercial...
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 … Read more
Government Response
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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2 Conclusion Acknowledged
Second Report - Access to cash in …
We welcome recent initiatives announced by the Cash Action Group to ensure free access to...
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 … Read more
Government Response
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.
Scotland Office
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3 Conclusion Acknowledged
Second Report - Access to cash in …
We welcome the Government’s commitment to legislating to protect access to cash.
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 … Read more
Government Response
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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4 Conclusion Acknowledged
Second Report - Access to cash in …
The reported increase in the number of retailers refusing to accept cash could significantly inhibit...
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 … Read more
Government Response
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.
Scotland Office
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5 Conclusion Not Addressed
Second Report - Access to cash in …
There seems to be limited general data in relation to businesses accepting cash as a...
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 … Read more
Government Response
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.
Scotland Office
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6 Recommendation Rejected
Second Report - Access to cash in …
We believe the issue of cash acceptance in a retail setting requires further investigation.
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 … Read more
Government Response
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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7 Conclusion Not Addressed
Second Report - Access to cash in …
We are of the opinion that the current rapid rate of bank branch closures may...
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. … Read more
Government Response
The government repeated the committee's conclusion verbatim, without adding any further response or information.
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8 Recommendation Accepted in Part
Second Report - Access to cash in …
We welcome industry-led initiatives, such as LINK’s Financial Inclusion Programme, to provide free access to...
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 … Read more
Government Response
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.
Scotland Office
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9 Recommendation Rejected
Second Report - Access to cash in …
We recommend that the UK Government should clarify their position on how the Financial Services...
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 … Read more
Government Response
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.
Scotland Office
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10 Conclusion Acknowledged
Second Report - Access to cash in …
Deposit-taking ATMs would provide a valuable service to consumers and SMEs in Scotland that have...
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
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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11 Recommendation Acknowledged
Second Report - Access to cash in …
Attempts to introduce deposit-taking ATMs for both consumers and SMEs have been constrained by a...
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 … Read more
Government Response
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.
Scotland Office
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12 Conclusion Acknowledged
Second Report - Access to cash in …
The Post Office play a substantial role in the provision of free access to cash...
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 … Read more
Government Response
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.
Scotland Office
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13 Conclusion Acknowledged
Second Report - Access to cash in …
Despite the efforts taken by the banking industry and the Post Office, the current cash...
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 … Read more
Government Response
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.
Scotland Office
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14 Recommendation Accepted
Second Report - Access to cash in …
Building on the structure and objectives of the Banking Framework Agreement, we recommend that the...
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 … Read more
Government Response
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.
Scotland Office
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Government Response AI assessment · 14 of 5 classified
Accepted 1
Accepted in Part 1
Acknowledged 8
Not Addressed 2
Rejected 2
Total 5 recs + 9 conclusions
Correspondence 7 letters
20 Jun 2022 To committee Letter from John Glen, Economic Secretary, HM Treasury, on the follow-up to access to cash
Parliament page
20 Jun 2022 To committee Letter from Duncan Cockburn, CEO, OneBanks, on the follow-up to access to cash
Parliament page
14 Jun 2022 Policy briefing from Age Scotland on Access to cash in Scotland, dated May 2022
Parliament page
7 Mar 2022 To committee Letter from Andrew McIntyre, Senior Communications Manager, Scotland, TSB, following-up to access to cash evidence session-customer support, dated 28 February 2022
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31 Jan 2022 To committee Letter from Duncan Cockburn, CEO, OneBanks, on access to cash and the OneBanks pilots, dated 25 January 2022
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18 Jan 2022 To committee Letter from Richard Cooper, Executive Director–Marketing, NCR, Cardtronics Division, on ATM infrastructure, dated 10 January 2022
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25 Oct 2021 To committee Letter from Debbie Hutchings, Regional Officer, Unite the Union, on Virgin Money branch closures, dated 1 October 2021
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