Presenting his first ‘Spring Statement’ as UK Chancellor of the Exchequer, Rishi Sunak is expected to announce a ‘series of measures’ to protect consumer cash access.
UK consumer advocacy concerns have been raised with regards to the nation’s ‘crumbling cashpoint infrastructure’, and its impact on diverse sections of society including low-paid workers, the elderly and rural communities.
A two-year study undertaken by consumer portal Which.co.uk highlighted that 10,000 free-to-use cashpoints had been wiped out of the UK’s ‘cash network’, as high street banks closed 1,200 branches between 2017 and 2019.
The government has been warned of a ‘cash access inequality’ becoming apparent across the UK, in which the nation’s poorest areas will see free ATMs replaced by fee-charging machines.
Furthermore, a number of constituencies have reported that free ATMs have drastically fallen to just one access point serving rural communities.
Announcing his Budget Statement on Wednesday 11 March, Sunak will instruct the Financial Conduct Authority (FCA) and Payments Systems Regulator (PSR) to draft a framework to protect and revitalise the UK’s cashpoint network.
UK media has reported that Sunak may instruct the bodies to draft plans on a new watchdog, ensuring that UK banks continue to provide ‘cash support’ for consumers and communities.
Further proposals could see the government enforce UK retailers such as supermarkets, the Post Office and petrol stations to significantly expand their ATM capacities, which could include additional cashback services.
Gareth Shaw, Head of Money at Which.co.uk, described consumer cash access as vital to the UK economy as the expansion of broadband penetration.
He said: “Many people have been left struggling from the double blow of cashpoint and bank branch closures – and suffered at the hands of industry mismanagement that has left Britain’s cash landscape on the verge of collapse.
“This Budget will decide the future of cash. The Chancellor has a huge opportunity here to protect cash for the millions of people who rely on it.”
