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Rayner column: Concerns over inability to access cash

In her latest Reporter column, Angela Rayner - the MP for Ashton and Droylsden - highlights an issue she's regularly contacted about by her constituents.

This week I want to discuss an issue that I receive a large amount of correspondence on – access to cash or, to be more accurate, the inability to access cash.

While it’s true that the use of cash has been on the decline for some time - and accelerated by the pandemic - it should be noted that this trend is not taking place equally across all parts of society.

Research by the Financial Conduct Authority (FCA) shows that five million adults use cash for most of their purchases and around 1.2 million adults in the UK do not have bank accounts.

A study by Which found that one in six people struggled with the shift towards cashless payment during the pandemic and lower-income households and those that do not have or cannot use the internet are much more likely to depend on cash.

Many of us relish advances in technology to make our lives faster and easier, but there is still an important duty to maintain an easy-access and free-to-use cash network.

We do not want to see people cut off from full participation in society, unable to access goods and services. 

We must also not force small businesses to go cashless against their will.

An unmanaged drift towards a cashless society risks seriously disadvantaging certain people, businesses and communities. 

It is vital that we find ways to manage and protect access to cash and that the Government ensures the decline in cash use does not contribute to inequality.

Having promised to bring forward legislation on this issue in 2020, the Government finally announced plans to protect access to cash in the Queen’s Speech last month.

It says the Financial Services and Markets Bill will give the FCA powers to ensure that designated firms continue to provide deposit and withdrawal facilities across the UK. 

It says it will set out its expectations for a reasonable distance that people have to travel to access cash in due course and that this will initially be based on current provision of access to cash.

After years of delay and the closure of 5,000 bank branches since 2015 – including several in my constituency that I have strongly objected to - we need urgent action to protect both cash and banking services for the most vulnerable.

I will continue to be a voice for those sections of society that rely on being able to access their cash. 

They have every right to be able to fully participate in our society.

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