Government introduces law to protect access to cash 

The new Financial Services and Markets Bill, announced in the Queen’s speech at the opening of Parliament, will support consumers by protecting access to cash. 

The government said it would ensure the continued availability of withdrawal and deposit facilities across the UK and that the country’s cash infrastructure was sustainable for the long term.

The bill would also enable the Payment Systems Regulator to require banks to reimburse authorised push payment (APP) scam losses, totalling hundreds of millions of pounds each year. This would ensure victims were not left paying for fraud through no fault of their own.

The measures formed part of wider plans to maintain and enhance the UK’s position as a global leader in financial services, cutting red tape while maintaining high regulatory standards and ensuring the sector continued to deliver for individuals and businesses.

Economic Secretary to the Treasury John Glen said the government was reforming its financial services sector since it left the EU to ensure it acts in the interests of communities and citizens, creating jobs, supporting businesses, and powering growth across all of the UK. 

“We know that access to cash is still vital for many people, especially those in vulnerable groups,” he said. 

“We promised we would protect it, and through this Bill we are delivering on that promise.

“We are also sticking up for victims of financial scams that can have a devastating impact, by ensuring the regulator can act to make banks reimburse people who have lost money through no fault of their own.”

The Financial Services and Markets Bill would deliver on the ambitious vision for the financial services sector set out by the Chancellor at Mansion House last year. 

It also aimed to build on the Financial Services Act 2021, which was the first step in amending the UK’s regulatory regime outside of the EU.

The bill would make the most of the opportunities of Brexit by establishing a coherent, agile and internationally respected approach to financial services regulation that is right for the UK.

More details will be available when the bill is formally introduced.