Banks forced to provide free ATMs within three miles of homes

The announcement comes amid concerns that banks are waging war on cash in an attempt to force customers to switch to card payments. Photo: PA

Campaigners including Conservative MPs and Nigel Farage, former leader of the Brexit Party, called on No. 10 to pass laws to save cash.

Andrew Griffith, Treasury Secretary at the Treasury Department, said that the rules showed that «cash plays an important and permanent role.»

«We take steps to protect access to cash in accordance with the law and state that this means free withdrawals and the availability of funds for cash at a reasonable distance , he said.

«People don't have to walk for hours to take off a ten and put in someone's birthday card, and companies don't have to travel long distances to deposit cash.

“These measures benefit all who use cash, but especially those who live in rural areas, the elderly and people with disabilities.”

ATM numbers are declining — ATM numbers

Latest FCA data shows that , as of last summer, 99.8% of the UK population lived within 5 km (3.1 miles) of a free cash point.

However, the Financial Supervisory Authority has also found evidence that the number of bank branches, post offices and free ATMs has decreased.

Downing Street wants to maintain the current level of access to cash, given the importance of paper money for many vulnerable groups.< /p>It is easier to manage the family budget

Cash is disproportionately used by older and low-income families. which is easier to manage the family budget than digital payments.

Under the new rules, the FCA will have to «take into account» access to cash, including hours of operation and the need for human assistance.

The use of coins and banknotes has declined dramatically over the past decade as online payments rose from 45% to 85%.

But it rebounded last year as families returned to physical money. to help them better manage their finances during the cost of living crisis.

Data from the National Building Society showed that ATM withdrawals increased by 19% in 2022 compared to 2021.< /p> 1304 Sharp decline in cash use

Conservative MPs called for stronger protections, and some called for Rishi Sunaka to go further and also pass laws requiring stores to accept physical money.

The Prime Minister dismissed these calls in June, telling the House of Commons that “organizations themselves should be able to choose the forms of payment they will accept '.

Parliament last month passed the Financial Services and Markets Act, which gives city supervisors the power to enforce the new minimum for banks. distances.

At the time, the Treasury said it would provide additional guidance on what is considered «reasonable distance» for people who must travel to access cash.

Ministers will also set which companies will be subject to the rules. , and the FCA will consult with industry representatives this fall before implementing them.

An FCA spokesman said: “Payment methods are changing, but these new powers will help keep access to cash for many businesses and people who continue to rely on it.

“We will consult in the fall on new rules that will require banks to maintain reasonable access to cash in the local area by evaluating local collateral and taking appropriate steps to install additional services where they are needed .

«We look forward to the government's announcement of which firms will apply our new cash access rules to inform this vital work.»

Make businesses accept cash

Anne Marie Morris, Conservative MP, who sits on the Commons Treasury committee, has expressed concern about how the new rules will be applied.

She also urged Downing Street to go further by passing a law that accepts both cash and cards.

“Guaranteed free access to cash is a good step forward. I welcome it. But what about the police? she told The Telegraph.

“The concept needs stress testing. A full 3-mile commitment for rural areas sounds great, but how do you define rural areas?

“This is a step in the right direction, but without a better understanding of the need for cash, we won't be able to achieve the best result. results.”

She added: “Obviously accessing cash and accepting cash are two sides of the same coin. These two factors must be in balance.

“Some businesses don't accept cash and some only accept cash. Some consumers can only pay in cash, many prefer to pay in cash to make budgeting easier.

“More attention needs to be paid to this. The government needs to rethink the issue of accepting cash to avoid social and financial exclusion.”