universal service obligations (USOs), and therefore Age UK is calling on the government to introduce a USO for cash, thereby guaranteeing that a bank branch or a cash machine remains within reasonable travelling distance of every home in the country. “It’s time for the government to recognise how important banknotes and coins are to all our lives and treat the cash system as the essential piece of infrastructure it is – just like utilities, post and broadband,” the charity director of the organisation, Caroline Abrahams, said.
According to the charity, millions of citizens have been cut off from cash and banking services owing to the lack of facilities, and as a result, they fall victim to financial abuse since they have no choice but to rely on others to conduct transactions on their behalf. “If the government is serious about ‘building back better’ after the pandemic, then they must legislate to protect cash access within a reasonable travel distance of people’s homes. This will not only help the millions of citizens of all ages who risk being excluded from society if cash is allowed to die, but can also help revitalise our high streets as local businesses strive to recover from the last nightmarish 15 months,” Abrahams noted.
Apart from the declining number of ATMs available, many banks have also begun deserting certain communities, as they shut down branches or reduce working hours at the branches which continue to operate. Since January 2015, nearly 4,300 bank branches have been shut in the UK. However, contrary to popular belief, it is not the rural areas that are being deserted by financial institutions. Between 2018 and 2020, the biggest decrease in free-to-use ATMs was reported in “multicultural metropolitans”, a research conducted by the Financial Conduct Authority (FCA) revealed.
In order to address these pressing issues, last month, the economic secretary to the Treasury announced a consultation on legislative proposals for the protection of access to cash. “We’ve already legislated to make it easier for businesses of all sizes to offer cashback without a purchase and in May we outlined the next stage in delivering on our pledge of legislation to protect access to cash for those who need it,” a Treasury spokesperson said.
