In a move to ensure widespread access to cash, the UK government has made it a legal right for nearly everyone in Britain to have a cash machine within a three-mile radius
The finance ministry has announced that banks and building societies will be required to meet minimum expectations to protect cash services, and could face fines if they fail to do so. This is in response to the decline in cash usage, as digital payments, cards, and smartphones become increasingly popular.
The use of cash as a percentage of all payments has fallen from 62% in 2006 to 15% in 2021, and is projected to decrease to just 6% by 2031. The COVID-19 pandemic has further accelerated the shift towards contactless payments.
While cards are currently the preferred payment method, many residents in rural areas are concerned about losing access to cash due to bank branch closures and the reliance on fee-charging ATMs. The closure of bank branches is becoming more common as more people turn to online banking.
In a statement, Andrew Griffith, Britain’s financial services minister, emphasized the importance of cash and its ongoing role: “Whilst the growing choice and convenience of digital payments is great, cash has an important and continuing role to play.”
Under the newly approved Financial Services and Markets Act, the Financial Conduct Authority (FCA) has been granted the power to protect access to cash without any fees for individuals with a bank account.
The finance ministry has also specified that if a bank withdraws a service, an alternative service must be put in place before the closure is implemented.
These measures are designed to benefit everyone who uses cash, with a particular focus on those living in rural areas, the elderly, and individuals with disabilities, according to Griffith. He further highlighted that cash access is crucial for these groups.
Currently, 97.5% of people residing in urban areas have access to cash deposit and withdrawal services within a mile. In rural areas, however, this figure drops to 72.6%, but rises to 98.5% within a three-mile radius.
The ministry emphasized that the FCA should utilize its powers to maintain this level of coverage while recognizing that the needs may vary by location and evolve over time.