The All Party Parliamentary Small Shops Group has written to Financial Secretary to the Treasury Rt Hon Mel Stride MP, chair of the Treasury Select Committee Nicky Morgan MP and Interim MDs of the Payment Systems Regulator Louise Buckley and Chris Hemsley, calling on the Government and the regulator to take forward the recommendations of the Access to Cash review and urgently review the impact of ongoing cuts to interchange fees on ATMs imposed by LINK.
The Access to Cash review, published earlier this month by Natalie Ceeney CBE, makes a series of recommendations to secure the public’s future access to cash. These include:
- A “Guarantee to Cash Access” for all, including those in remote and rural areas
- Those providing essential services to be required to allow consumers to pay by cash
- A more efficient, effective and resilient wholesale cash infrastructure to ensure that cash remains viable as its use declines
LINK’s interchange fee cuts for cash machine operators, first imposed in 2018, have been widely criticised by the Treasury Select Committee, consumer group Which? and business groups including the Association of Convenience Stores. The cuts have so far led to a 6% fall in the volume of ATM transactions and over 250 free to use cash machines being either removed or switched to a charged model every month.
The letter from the All Party Group highlights the importance of ATMs as enablers for spending in high streets, parades and small businesses, and refers to the Access to Cash Review’s finding that 25 million people say living in a cashless society would present real challenges.
APPG Chair Ruth George said: “We are already seeing a worrying decline in free-to-use cash machines. Coupled with the mass closure of bank branches , and Post Offices shutting as well, it’s much harder for many people to access the cash they need for day-to-day living. Cash is still very important for many people, and if you’re on a low income then cash makes it much easier to budget. And in many towns and more rural areas car parks, market stalls, charitable events and many small businesses only accept cash. Getting by financially is tough, whether you’re on a low income, if you’re older, or for small businesses. It’s important to make sure we don’t make life even harder through a lack of access to cash.”
Association of Convenience Stores chief executive James Lowman said: “Consumers access to cash is being threatened as banks leave communities and the remaining ATMs in convenience stores become more difficult to keep because of LINK’s cuts to interchange fees. We fully support the All Party Group’s calls for intervention from the Payment Systems Regulator and the Government, as cash is still essential for millions of people in the UK and must be protected.”
