‘Disturbing’ mass bank closures mean people should have legal right to pay in cash, says GMB union
People should have a legal right to pay in cash to guard against the “disturbing” consequences of mass bank closures, one of Britain’s biggest trade unions has said.
The GMB Union, which represents more than 500,000 workers, has argued it is vital to protect paper money in an increasingly digital society.
Together with the financial services union Aegis, the organisation is seeking support for its campaign at the Trades Union Congress (TUC) annual conference.
The legal right to pay in cash – which the GMB suggests could resemble laws already passed in some American states – would aim to protect “e-disadvantaged” people, who may be particularly vulnerable to financial crime because of their lack of technological experience.
Rishi Sunak previously appeared to rule out the move, insisting it would not be “appropriate” for the Government to start imposing such rules on individual businesses.
‘Essential right’
But Gary Smith, the GMB general secretary, argued it would be “common sense” to write the entitlement into legislation, as he warned a society increasingly reliant on technology risks isolating older people, small businesses and lower-paid workers.
The proposals were set to be debated on Sunday, but have been postponed because of business overrunning.
They also include a call for a statutory obligation on banks to provide an “appropriate network of free-to-use cash deposit and withdrawal services for public access across the UK”.
Mr Smith said using cash for everyday purposes should be an “essential right”, but warned it was under threat as banks are disappearing from the high street.
More than 400 bank branches have closed in 2023 alone, according to analysis by The Financial Times, with another 200 scheduled to shut by the end of the year. Nearly 15,000 cash points have also been lost in the past five years.
‘Consequences are real and disturbing’
Mr Smith warned that there will be “stark” consequences if this trend is allowed to continue, with “millions of vulnerable customers” potentially left with “little or no access to their cash”.
He told The Telegraph: “Even with digital becoming commonplace, it doesn’t work for everybody – losing face to face services in more places throughout the country is a huge problem for many. The consequences are real and disturbing.”
Mr Smith said people less confident with technology are at greater risk of scams, which is only exacerbated if they are stuck using out-of-date devices.
“These moves to use tech and digital as the primary way to do anything impacts on our older citizens and those poorer hardest of all,” he said.
“If you’ve not had to use a computer in your day job, then learning how to do it as an older person – with no support – can be a challenge. And to learn how to spot the scammers is harder again.”
He added: “Low-paid workers understand more than most the need to keep to a tight budget and cash plays a critical role in their daily lives. For small tradespeople, using cash is essential. And so many of our trade union members who work to make sure the nation’s cash flows smoothly know first-hand how important this service is.”
‘Sunak: people should have access to cash’
Asked last month whether people should have a right to use cash in shops, Mr Sunak said: “I think it is right that people should have access to cash.
“It is a different thing for the Government to start imposing on individual businesses how they should do their business. I don’t think that’s appropriate.”
It comes after ministers announced that banks will be forced to provide customers with free access to cash within three miles of their home in rural areas, and just one mile for those in towns and cities.
The Government is bringing forward new laws designed to preserve paper money and protect deposit and withdrawal services.
Banks that fail to comply with the access rules will face limitless fines.
