Second Report - Access to cash in Scotland
Select Committee
Scottish Affairs Committee
HC 80
11 July 2022
Recommendations
1 results
11
Acknowledged
Attempts to introduce deposit-taking ATMs for both consumers and SMEs have been constrained by a...
Recommendation
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 …
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Government Response 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.
Scotland Office
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Conclusions (7) Observations and findings — click to expand
1
Conclusion
Acknowledged
Para 23
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 …
Government Response 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.
2
Conclusion
Acknowledged
Para 26
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 …
Government Response 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.
3
Conclusion
Acknowledged
Para 27
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 …
Government Response 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.
4
Conclusion
Acknowledged
Para 35
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.
Government Response 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.
10
Conclusion
Acknowledged
Para 66
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 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.
12
Conclusion
Acknowledged
Para 78
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.
Government Response 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.
13
Conclusion
Acknowledged
Para 79
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 …
Government Response 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.