Day: May 19, 2022

New powers to protect access to cash

  • Millions of people in communities across the UK will see their ability to access cash protected in new powers set out by the government today (Thursday 19th May).
  • For the first time, the UK’s largest banks and building societies will be subject to new Financial Conduct Authority powers to ensure the continued availability of withdrawal and deposit facilities in local communities across the UK.
  • Measures will be legislated for in the upcoming Financial Services and Markets Bill which will protect consumers and enhance the UK’s position as a global leader in financial services.

MILLIONS of people across the UK will benefit from new legislation to protect access to cash, helping to level up opportunity and ensure financial inclusion across the UK, the government announced today (Thursday 19 May).

Under the new rules, the financial regulator – the Financial Conduct Authority (FCA) – will be granted new powers over the UK’s largest banks and building societies, to ensure that cash withdrawal and deposit facilities are available in communities across the country.

The FCA’s new powers will allow it to address cash access issues at both a national and local level. To support the FCA, the government will in due course set out its expectations for a reasonable distance for people to travel when depositing and withdrawing cash. This will reflect the existing spread of cash withdrawal and deposit facilities in the UK.

Cash is the second most frequently used method of payment in the UK, and around 5.4 million adults rely on cash to a very great or great extent in their daily lives – further emphasising the importance of this legislation and new FCA powers.

Economic Secretary John Glen, who will be visiting Scotland today, said: “Millions of people across the UK still rely on cash, particularly those in vulnerable groups, and today we are delivering on our promise to ensure that access to cash is protected in communities across the country.

“I want to make sure that people are still able to use cash as part of their daily lives, and it’s crucial to ensure that no person nor community across the UK is left behind as we embrace a more digital world.”

The Chancellor set out in his Mansion House Speech in 2021 that the UK must remain at the forefront of innovation and technology, and the government recognises the need to embrace the transition to a more digital world and realise the opportunities this brings individuals and businesses.

But as we transition to a digital payments system, it is critical to acknowledge that cash access remains vital to millions of people in communities across the UK, particularly those in vulnerable groups, and no one should be left behind.

The government passed legislation to enable the widespread adoption of cashback without a purchase as part of the Financial Services Act 2021, which was possible as a result of the UK’s departure from the European Union.

And last month the government announced its intention to legislate to provide the Bank of England with the powers necessary to ensure the UK’s wholesale cash infrastructure – which includes the network of cash centres integral to the sorting, storing and distribution of notes and coin – remains effective, resilient, and sustainable, and continues to support access to cash across the UK.

Taken together, these measures will ensure that the UK’s cash infrastructure is viable for the long term.

These powers will be legislated for in the upcoming Financial Services and Markets Bill, which will protect consumers and enhance the UK’s position as a global leader in financial services.

“Significant achievement” in delivery of social security – but “huge amount of work remains”

More than £3.9 billion to benefit 1 million people in 2022-23

A report published today by Audit Scotland has highlighted the Scottish Government’s “significant achievement” in the scale and pace of delivering the devolved programme of social security benefits in Scotland, including seven new payments unavailable anywhere else in the UK.

The report notes that this work continued despite ongoing challenges due to the pandemic. The report further acknowledges that the Scottish Government has continued to successfully deliver existing social security benefits and introduce complex new ones – including Scottish Child Payment, Child Disability Payment and Adult Disability Payment – in challenging circumstances.

The report also recognises the importance of social security in our collective national mission to tackle child poverty, mitigating the cost of living crisis and addressing inequalities.

In line with Scottish Fiscal Commission forecasts, the Scottish Government has committed over £3.9bn for benefit expenditure in 2022-23, providing support to more than one million people. This is over £360m above the level of funding to be received from the UK Government through Block Grant Adjustments.

Stephen Boyle, Auditor General for Scotland, said: “Successfully launching new benefits during the pandemic has been a significant achievement for the Scottish Government, but a huge amount of work remains.

“The government now needs to plan how it will manage to pay for greater social security spending alongside other policy initiatives.

“To demonstrate how it is achieving value for money, it also needs to be clearer about how this extra spending will improve the lives of people living in Scotland.”

Responding to the report, Minister for Social Security Ben Macpherson said: “I am pleased that this Audit Scotland report recognises the significant progress we have made in building a new public service from scratch since 2018 and delivering 12 benefits – seven of which are completely new forms of financial support that are not available anywhere else in the UK.

“We have successfully introduced a range of benefits that are now supporting carers and low-income families with their living costs, including with heating and we are helping disabled people to live full and independent lives.

“This year will see us deliver even more for the people of Scotland. Our Scottish Child Payment will be extended to eligible children aged under 16 and be increased to £25 per week per child by the end of the year, supporting over 430,000 eligible children; and in winter 2022/23 we will introduce our new winter heating payment for low-income households – a stable £50 payment that will support 400,000 low-income households with their heating costs.

“We will also continue to roll out Adult Disability Payment, our most complex benefit, and significantly progress transferring tens of thousands of Scottish disability benefit cases from the DWP to Social Security Scotland.

“I am proud that we have built our social security system with the people who will use it, and appreciate that the report acknowledges our focus has delivered a service built on our principles of dignity, fairness and respect. The report also notes the positive feedback people have shared about their experiences of engaging with Social Security Scotland.

“We have been ambitious in our delivery timeline – including introducing new benefits while dealing with the pandemic – and we are ensuring that we transfer tens of thousands of cases safely and securely from the DWP to Social Security Scotland.

“As well as delivering benefits now and in the period ahead, we are responsibly and ambitiously developing a new social security system that will serve Scotland for many years to come, putting people at the heart of everything we do.”

Social Security Scotland currently administers 12 benefits:

Carer’s Allowance Supplement
Pregnancy and Baby Payment
Early Learning Payment
School Age Payment
Best Start Foods
Funeral Support Payment
Young Carer Grant
Job Start Payment
Scottish Child Payment
Child Winter Heating Assistance
Child Disability Payment

Adult Disability Payment is the replacement for the UK Government’s Personal Independence Payment. It is being introduced in phases ahead of national rollout on 29 August.

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