New laws needed to prevent UK ‘cash system collapse’
(18 February 2020 – United Kingdom) Chancellor Rishi Sunak has been urged to save banknotes and coins with campaigners asserting that without urgent new laws the British cash system could collapse by 2030.
According to the Financial Inclusion Commission, nearly two million people in Britain don't have a bank account, meaning they need notes and coins to purchases goods and services. There were 11 billion cash payments in the UK in 2018, but they are forecast to fall to 3.8 billion by 2028, accounting for fewer than one in ten of all payments (9 percent).
In 2019, 13 percent of UK cash points have closed as lower withdrawals have made them economically unviable. A quarter of the machines now charge people to withdraw their cash, matching similar non-member ATM fees charged by Australian banks. The Post Office's cash access service has come under threat and Barclays recently reversed plans to stop customers taking cash out from Post Offices after criticisms were raised.
But the Access to Cash Review believes the only way to manage the cash system is for the government to legislate and give regulators the tools that they need to protect cash access. Banks should be forced to provide suitable cash access to their customers
"The UK is fast becoming a cashless society without knowing what this really means for consumers or for the UK economy" said Access to Cash Review member Natalie Ceeney.
"Technology has transformed banking for millions of people, but we know that many still rely on cash. That's why we've invested £2bn to ensure everyday banking services are available at 11,500 Post Office branches across the UK. We're also working closely with industry and regulators to ensure everyone who needs cash can access it” a spokesman for the Treasury said.
Subscribe