My Lords, it is as if we were never away. I remind the House of my relevant interests as a councillor on Kirklees Council and a vice-president of the Local Government Association.
The noble Baroness, Lady Hayman of Ullock, made a very strong case in support of her Amendment 164, to which I have added my name. This amendment is so important because this is, after all, a levelling-up Bill. If there is no access to financial services in the very places that are the focus of the Government’s mission statement for levelling up, we are doing them a disservice and not, in fact, helping to level up. So I hope the Minister will take heed of the noble Baroness’s arguments.
The House of Commons Library produced a very informative briefing on this very issue last year. One of its statistics was that overall use of cash payments fell from 45% of all transactions in 2015 to 17% in 2021. However, since the cost of living crisis, there has been anecdotal but substantial evidence that use of cash has increased as families find it easier to control their spending if they make cash payments.
The noble Baroness, Lady Hayman, has argued on behalf of those without bank accounts; there are a large number of such people. How will they manage if they cannot access cash? Perhaps the Minister will be able to tell us. As the noble Baroness, Lady Hayman, said, it is also more difficult for some older people and those with disabilities, particularly learning disabilities, to manage bank accounts, whereas they can live more independently with cash.
As the noble Baroness, Lady Hayman, said, all these changes to a more cashless society depend on a good mobile signal or access to broadband. Let us remember that these are simply not available in many parts of the country. The noble Baroness, Lady McIntosh, knows how difficult it is to access a mobile signal, let alone the internet, if you live in the Yorkshire Dales. Moving without thought to a lack of in-person banking access will seriously harm people in rural communities and those folk I mentioned.
So far, we have not thought much about local retailers in small towns and villages, which often carry out their transactions by cash. The question for those retailers, which some of them have raised with me, is where they deposit their cash if there is no bank available. If they have a substantial amount of cash, as some of them will, travelling with it and depositing it is a risk in itself.
The number of physical banks has fallen by 34% between 2012 and 2021—so says the House of Commons Library briefing. That is a substantial number. The Government anticipate that the loss of banks can, on the one hand, be resolved by people using post offices, but the number of post offices too is in sharp decline. Huddersfield is a very large town of more than 100,000 people. The post office in its centre has now moved into a branch of another shop, so it is not even a post office on its own. You have to walk through the shop to get to the post office at the back. That is hardly a presence in our towns and communities that encourages people to believe they have access to cash and banking facilities.
Finally, during the recess somebody told me about a particular banking problem they had. The bank had made an error in a transaction and wrongly attributed it as a charge on their account instead of as a payment. Resolving this problem took a couple of weeks. The person in question could access their internet account and tried resolving it that way. They failed. They tried to phone the bank: “Press 1, press 2, press 3”; “Hold on: I can’t do it”, they were told, “but ring in the morning, when somebody will know what to do”. In the morning, they were told, “Go to your local branch”, at which point the person in question said, “It closed last week. Where do you expect me to go?” In the end, they had to travel 20 miles to the nearest bank in a
large city to try to see somebody to resolve the issue. It was then resolved, because you are more able to get such things sorted in person.
That will not be the only example; if I have heard of that, there will be numerous examples of that sort of situation. If that happened to an older person without access to the internet or the ability to get by public transport to a branch 10 or so miles away, they would have been at a huge disadvantage and lost that money, because there would be no way to resolve the issue. That is why banking and financial services need to have a physical presence in our communities. We do not expect every bank to have a branch everywhere, but we do expect the Government to agree to the amendment from the noble Baroness, Lady Hayman, to try to resolve this issue so that we can help to level up some of our communities and some of our folk. If the noble Baroness intends to move the amendment to a vote, we will certainly support it.
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