The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups. UK Finance estimates around 1.5 million people pay mainly or solely with cash, many of these on low or fixed incomes. It is vital that cash remains a viable method of payment for those who rely on it.

The Financial Conduct Authority has recently assumed regulatory responsibility for protecting access to cash, and its new rules went live on 18 September. The rules require the UK’s largest banks and building societies to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.

Whilst it is for each business to decide on the forms of payment it chooses to accept, the Government welcomes the work of the regulators to monitor cash acceptance. For example, research published by the Financial Conduct Authority found that 98 per cent of small businesses surveyed would never turn customers away if they needed to pay in cash. The new rules by the Financial Conduct Authority will also support businesses to accept cash by ensuring they have reasonable access to deposit facilities.

Many banking customers also benefit from the ease and convenience of online or mobile banking and payments. The Government recognises that promoting digital inclusion is essential to building the skills and confidence people need to participate in a modern digital economy and is considering barriers to this. In addition, the Government is committed to championing sufficient in person banking for all as a priority, including those who are reliant on cash.

This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this parliament. These hubs provide individuals who need face-to-face support with critical cash and banking services, including support with using digital banking.

The Government recognises the vital role SMEs play in fuelling economic growth, and it is important they can access the banking services they need.

Last year the Chancellor asked the FCA to collect evidence to help the Government understand where account closures and refusals are happening and why. The FCA published their initial findings on 19 September, and are doing further work with firms to verify the data and to better understand the reasons behind account refusals. In addition, the Treasury is continuing to engage with industry to understand any existing or emerging issues regarding bank account access for businesses.

On 21 July, the Government published a policy statement setting out its plans to strengthen requirements relating to users’ payment service framework contract terminations. This will increase the minimum notice period in cases of contract termination to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement service. Providers will also be required to spell out to the affected customer why they are terminating their contract – increasing transparency and aiding customers’ ability to appeal decisions. Both requirements will be subject to certain exceptions, including if to do so would be unlawful.

The Government recognises the vital role SMEs play in fuelling economic growth, and it is important they can access the banking services they need.

Last year the Chancellor asked the FCA to collect evidence to help the Government understand where account closures and refusals are happening and why. The FCA published their initial findings on 19 September, and are doing further work with firms to verify the data and to better understand the reasons behind account refusals. In addition, the Treasury is continuing to engage with industry to understand any existing or emerging issues regarding bank account access for businesses.

On 21 July, the Government published a policy statement setting out its plans to strengthen requirements relating to users’ payment service framework contract terminations. This will increase the minimum notice period in cases of contract termination to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement service. Providers will also be required to spell out to the affected customer why they are terminating their contract – increasing transparency and aiding customers’ ability to appeal decisions. Both requirements will be subject to certain exceptions, including if to do so would be unlawful.

The Government recognises the vital role SMEs play in fuelling economic growth, and it is important they can access the banking services they need.

Last year the Chancellor asked the FCA to collect evidence to help the Government understand where account closures and refusals are happening and why. The FCA published their initial findings on 19 September, and are doing further work with firms to verify the data and to better understand the reasons behind account refusals. In addition, the Treasury is continuing to engage with industry to understand any existing or emerging issues regarding bank account access for businesses.

On 21 July, the Government published a policy statement setting out its plans to strengthen requirements relating to users’ payment service framework contract terminations. This will increase the minimum notice period in cases of contract termination to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement service. Providers will also be required to spell out to the affected customer why they are terminating their contract – increasing transparency and aiding customers’ ability to appeal decisions. Both requirements will be subject to certain exceptions, including if to do so would be unlawful.

The government recognises that while the transition towards digital banking and payments brings many opportunities, cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups.

The government is currently taking legislation to protect access to cash across the UK through Parliament as part of the Financial Services and Markets Bill 2022. The legislation will establish the Financial Conduct Authority (FCA) as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.

As part of its responsibilities, the FCA will be granted powers to seek to address any local deficiencies in the provision of access to cash facilities that it has identified and considers to be significant. The government’s view is that this will allow for consideration of local circumstances in all parts of the UK, including in relation to rural areas. This will result in a regulatory framework that will support the ongoing assessment of cash needs and provision at both a nationwide and local level.

Following the government’s commitment to legislate, industry is working together to deliver new initiatives to provide shared access to cash services. To date, industry has committed to shared bank hubs in 29 locations across the UK and identified 18 further communities for piloting innovations in cash deposit services. Communities can request an assessment of access to cash in their area by LINK using the LINK website.

There is a wide range of options to access everyday banking services, beyond branches, such as online, telephone banking, and the Post Office, reflecting wider changes in how consumers choose to bank. In 2021, 86% of UK consumers used a form of remote banking, such as an app, online or on the phone.

The government works closely with regulators, industry, and consumer groups to support financial inclusion, and is fully supportive of the ongoing work to deliver appropriate access to banking services, including industry initiatives to provide free digital skills training to help customers access online banking.

We are in close contact with a wide range of businesses in Hong Kong, but it is for businesses themselves to make their own judgement calls. We are concerned that a number of recent decisions by the authorities in Hong Kong are further evidence of a determined campaign to stifle opposition and silence dissent. As a signatory to the Sino-British Joint Declaration, China must abide by the legally binding commitments it made to uphold fundamental rights and freedoms, and respect Hong Kong's high degree of autonomy for at least 50 years from 1997. The UK will continue to pursue an approach in Hong Kong that is rooted in our values, defends the rights of the people of Hong Kong and respects the provisions of the Joint Declaration.

The government recognises the important role banks can play in helping their customers monitor and manage their gambling spend. Last year the then Secretary of State for Digital, Culture, Media and Sport convened a roundtable of banks and other stakeholders in the financial sector to encourage them to do more in this regard and ministers have since corresponded with industry leaders on this issue. I am pleased that many banks have acted to offer their customers the option to block gambling transactions from their accounts and welcome NatWest’s introduction of a 48 hour gambling block.

Research published by the University of Bristol in July this year estimated that debit card gambling blocks are available for roughly 63% of UK current accounts but we encourage those banks that have not yet developed these kinds of services to do so. We also encourage banks to follow best practice in the design of their blocks, for instance including a sufficient 'cooling off' period.

The right reverend Prelate asks an important point: does this set a precedent? I certainly hope not. I would like to think that customers affected will reflect carefully on whether they should continue banking with Barclays. I am fully aware of the issues faced by those in the rural communities of which he speaks.

My Lords, the Government are disappointed by the withdrawal of Barclays from the renegotiated banking framework. None the less, the new banking framework will enable customers to access their cash from 27 high street banks. The Government will continue to ensure that communities receive support and have choice about how they manage their finances.