You will never be too far from cashpoint... by law

NEW laws to protect the future of cash were announced yesterday in a victory for Money Mail.

Millions of Britons still rely heavily on bank notes and coins to pay for goods and services despite the rise of contactless debit and credit cards.

They include elderly and vulnerable people – and families on lower incomes. The new laws will aim to ensure no one has to travel an ‘unreasonable’ distance to deposit or withdraw money. It has not yet been revealed how far this will be.

A huge number of bank branch and cashpoint closures has left parts of the country in danger of becoming money deserts.

Banks have axed more than 4,000 branches since 2015 and 12,000 free-to-use cashpoints have disappeared in the past four years, according to consumer group Which? Chancellor Rishi Sunak first pledged to introduce legislation to protect cash two years ago – and the move was confirmed in the Queen’s Speech last week.

Now the Treasury has vowed to arm City watchdog the Financial Conduct Authority with new powers to force banks and building societies to ensure customers do not lose access to cash. Money Mail has long campaigned for new strict rules to protect cash. More than ten million people would be unable to cope in a cashless society, according to a recent report.

The cost of living squeeze has left many struggling families even more dependent on notes and coins to help them budget better.

Rocio Concha of Which? said: ‘Cash remains a lifeline for millions, whether to pay for everyday essentials or to help keep track of spending amid soaring cost of livreasonable ing so it’s good to see the Government taking action and giving the FCA powers to protect them.

‘The Treasury’s proposal to base access to cash on geographical distances is a decent starting point. But this can often be a blunt tool so the FCA must fully consider a wide range of factors when determining a local community’s access to cash needs.’

Natalie Ceeney, of the independent Access to Cash Review group, said: ‘I’m pleased to see the Government is acting quickly after its announcement in the Queen’s Speech last week.

‘It’s vital that we all work together to get the best outcome for consumers and small businesses.’

The new laws are expected to come into force early next year. The outcome of the Treasury’s consultation on access to cash is due today. Economic Secretary to the Treasury John Glen said: ‘We are delivering on our promise to ensure access to cash is protected in communities across the country.’

Yesterday Lloyds Banking Group revealed it is shutting a further 28 branches this year – on top of 60 announced in March. Government figures show that Britain had more than 20,000 bank branches in 1988, but just 8,810 in 2021. Around 40,000 ATMs are currently free to use – 77 per cent of the total.