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How Which? campaigned to protect cash, and won
New rules ensuring free access to cash come into force today
After more than six years of Which? campaigning, new rules under the Financial Services and Markets Bill have finally come into force, protecting free access to cash for all.
Over the course of our campaign, Which? and more than 200,000 supporters highlighted the need for greater protection for continued free access to cash for those who need it.
Read on to learn more about the significance of these new rules for consumers.
Our campaign for free access to cash: a timeline
- February 2019: we launched our campaign with Which? research showing 3,000 cash machines had vanished from UK streets in the last six months of 2018, and the impact dwindling access was having on the people that rely on cash.
- September 2019: our research revealed the poorest areas are hit hardest by the loss of free-to-use cash machines.
- March 2020: ahead of the 2020 Budget, we launched a week of action to protect cash. This included directing 7,700 tweets at the Treasury and delivering over 10,000 stories to Downing Street. #ProtectCash trended nationally on Twitter (now X).
- December 2021: Which? called on banks to pause branch closures to protect access to cash.
- March 2022: we asked our supporters to write to their local papers and MPs about lost access to cash in their communities. In response, 6,500 letters were sent from supporters to 878 local papers, and nearly 25,000 emails were sent from supporters to MPs across every UK constituency, helping to bring the topic onto the news and political agenda.
- May 2022: legislation was committed to in the Queen’s Speech.
- September 2022: the Financial Services and Markets Bill entered Parliament, including rules to protect access to cash.
- May 2023: our amendment to the Bill in the Commons was accepted, cementing free access to cash.
- June 2023: the Financial Services and Markets Bill achieved Royal Assent and became law.
- 18 September 2024: new rules proposed by the Financial Conduct Authority (FCA) under the law came into force, fully protecting free access to cash.
What is the Financial Services and Markets legislation?
The legislation aims to 'strengthen the United Kingdom's financial services industry, ensuring that it continues to act in the interest of all people and communities'.
Which? worked tirelessly on the Bill as it made its way through parliament to ensure it remained as strong as possible, and successfully campaigned for the government to introduce an amendment on free access to cash.
Under the legislation, the government set out minimum distances for free cash withdrawals and deposits.
It said the vast majority of those who live in urban areas will have access to free cash withdrawal and deposit services within one mile of where they live, while those in rural areas can expect the same services within three miles of their home.
Banks and building societies that fail to provide free cash services within three miles could face fines under the rules.
The legislation also provides new powers to the FCA to ensure banks continue to provide adequate free access to cash.
- Find out more: new rules to protect cash access and scam victims become law
What are the FCA's new rules?
The financial watchdog's new rules stipulate that banks and building societies will need to weigh up if local communities lack access to cash services – such as branches and ATMs – and plug significant gaps.
Specifically, they will be required to assess cash access and check whether additional services are needed when changes are made to local services, such as the closure of a local branch.
The new rules also state that local residents and community groups will be able to request an assessment of whether there are gaps in local cash access, which providers must respond to. These requests can be made via LINK, which operates much of the UK's ATM network and co-ordinates between the FCA and banks on access to cash.
Where significant gaps are found, providers will have to deliver reasonable additional cash services.
In such cases, banks and building societies will be required to keep facilities such as branches and ATMs open until alternative cash services become available.
14 banks and building societies will have to deliver this new cash access system – the list can be found on the gov.uk website.
The FCA has made changes to the proposals it first consulted on in December 2023. The changes include extending the period for banks and building societies to carry out cash access assessments and giving local communities more time to make their case. Firms will also be able to review the provision of identified cash services after two years.
- Find out more: watchdog uses new powers to protect access to cash
How gaps in cash access could be filled
According to the FCA, any gaps could be filled with a range of measures, including banking hubs, ATMs and Post Office facilities.
Banking hubs allow staff from several banks to share the same space, helping to fill gaps left in the system from branch closures.
They have a counter service operated by the Post Office, allowing customers to conduct routine banking transactions such as withdrawing and depositing cash and paying in cheques.
Prior to winning the General Election, Labour pledged to open 350 banking hubs in towns and villages across Britain over the next five years. UK banks have since agreed to this.
Why does access to cash need protecting?
Sheldon Mills, executive director of consumers and competition at the FCA, said: 'Three million people continue to rely on cash, even as digital payments become more popular. And many small businesses still need somewhere to safely deposit their takings each day.
'That’s why we’ve acted quickly in response to new powers given to us by parliament to ensure reasonable access to cash withdrawal and deposits is maintained.'
Research published by the watchdog also found that individuals in low-income households (less than £15,000 a year), and who have low digital capability, have a higher reliance on physical cash.
Banks have closed 6,000 branches since 2015
Which? analysis has found bank and building society branches have been disappearing from our high streets at a frightening pace, over the past few years.
Since January 2015, banks and building societies have closed 6,143 branches, which represents about 62% of the branches that were open at the start of 2015.
NatWest Group, which comprises NatWest, Royal Bank of Scotland and Ulster Bank, has closed 1,406 branches – the most of any banking group.
Lloyds Banking Group, made up of Lloyds Bank, Halifax and Bank of Scotland, has shut down 1,208 sites. Barclays is the individual bank that has reduced its network the most, with 1,227 branches now closed.
In total, 410 closures have been scheduled across 2024, and another 116 have been pencilled in for 2025.
