26 May 2023

Which? wins campaign to protect free access to cash

A Bill amendment will ensure consumers can withdraw and deposit cash for free

The government has agreed to protect free access to cash following a campaign by Which?.

Measures to protect free access to cash have been unveiled by the government in an amendment to the Financial Services and Markets Bill.

The Bill, first announced in the Queen’s Speech in May 2022, has been making its way through parliament and aims to ‘strengthen the UK’s financial services industry, ensuring that it continues to act in the interest of all people and communities’.

It follows a longstanding campaign by Which? to protect consumers impacted by the rapid rate of bank branch and ATM closures.

Here, we explain what the amendment means and how the Bill will protect access to cash.

What is the Financial Services and Markets Bill?

The Bill will ensure people can continue to conveniently withdraw and deposit cash.

His Majesty’s Treasury will set minimum distances for cash withdrawals and deposits and these may differ between urban and rural locations, and also for personal and business accounts.

These will be monitored and enforced by the Financial Conduct Authority (FCA).

With its new powers, the FCA could stop banks and building societies from closing cash access services if there was no suitable alternative within a reasonable distance.

There are also other measures in the Bill to protect victims who have been left out-of-pocket by sophisticated scams.

Find out more: 6 things to know about cash legislation

What is the amendment?

Previously the Bill did not specify whether withdrawal and deposit facilities should be free, or whether consumers may have to pay a charge.

But the new amendment, called for by Which?, will ensure that people across the country can withdraw and deposit cash for free.

This means the FCA will have greater power over major banks and building societies to ensure reasonable free access to cash is preserved for those that need it.

Find out more: how people are using cash to budget

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Why is it needed?

Link, the UK’s largest cash machine network, estimates 5.4 million adults rely on cash in their day-to-day lives.

But Which? analysis has found almost half of the UK’s bank branch network has closed since 2015.

This year alone, 193 branches have closed – with another 266 scheduled later this year, bringing the total to 459 in 2023.

And 5,366 bank branches have closed since Which? began tracking bank branches in 2015, with this figure due to rise to 5,632 by the end of 2023.

In addition, more than 13,850 free-to-use ATMS in the UK have been lost since 2018, leaving many areas across the UK with particularly poor access to cash.

Find out more: is your local bank branch closing?

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When will the Bill become law?

The Bill was first published in July 2022 and has been making its way through parliament since then.

It’s due to begin its report stage in the House of Lords on 6 June and is likely to become law later this summer.

Which? secures huge win for consumers

Rocio Concha, Which? director of policy and advocacy, said: ‘Whether it's to buy everyday essentials or to keep track of spending during the cost of living crisis, cash is hugely important for millions of consumers.

‘With bank branches and ATMs continuing to close at rapid rates, those who are not yet ready or able to make the switch to digital payments can't be left behind.

‘Which? has campaigned tirelessly to ensure that new laws protect free access to cash – and we are delighted that the government agrees that people should not have to pay fees just to access their own money.’