Treasury designates banks and building societies subject to access to cash rules

In May 2024, the Treasury announced the designation of the banks and building societies that will be subject to the Financial Conduct Authority's new rules on access to cash, as well as the designation of an operator of cash access coordination arrangements¹. The announcement was made under powers in the Financial Services and Markets Act 2023, which received Royal Assent on 29 June 2023 and requires the FCA to seek to ensure the reasonable provision of cash withdrawal and deposit services for personal and business current accounts across the UK¹.

The FCA published its rules on 24 July 2024 and they came into force on 18 September 2024¹. Under the rules, designated firms must assess cash access and understand whether additional services are needed when changes are made to local cash access services; respond to local residents, community organisations and representative groups who request an assessment of whether there are gaps in local cash access; deliver reasonable additional cash services where significant gaps are found; and keep facilities, including bank branches and ATMs, open until additional cash services identified are available¹.

The FCA's stated aim is to address the cash access needs of consumers and businesses in local communities by requiring designated firms to assess and fill gaps in local cash provision¹.

The FCA's Financial Lives 2022 survey found that 6% of adults in the UK used cash to pay for everything or most things in the 12 months since May 2021, rising to 9% among those in vulnerable circumstances¹. Its data shows 95.0% of the UK population are within 1 mile of a free-to-use cash withdrawal point, such as cash machines, Post Office branches or bank or building society branches, and 99.7% are within 3 miles of a free-to-use cash access point¹.

The FCA says its powers focus on access to cash rather than wider banking services and do not prevent bank branches from closing, though the rules have an impact where closures leave significant gaps in communities' cash services¹. It continues to supervise branch and ATM closures or conversions under the Consumer Duty, having updated its guidance for firms in October 2022¹.

Why it matters for households

The rules place duties on the banks and building societies the Treasury has designated, rather than on customers directly. For people who rely on cash, the practical effect is that when a local branch or ATM changes, a designated firm must assess whether cash access is adequate and, where a significant gap is found, provide additional services. Local residents, community organisations and representative groups can request an assessment of whether gaps exist in their area¹. The FCA has not reported which firms were designated or named the operator of cash access coordination arrangements in the material it has published¹.

The FCA has also not reported how many assessments have been requested or how many additional services have been delivered since the rules took effect on 18 September 2024¹.

What happens next

The FCA had said it would publish an evaluation of the access to cash regime in 2027, but the Government has commissioned an independent Review of Access to Banking Services, expected to report in October 2026¹. Because the review covers issues closely related to the access to cash regime, the FCA has paused its planned evaluation to avoid duplication and says it will set out next steps after the review publishes its findings¹. In the meantime it says it will continue to monitor and supervise the regime and publish regular coverage updates¹.

The FCA's regulation of firms sits alongside the Treasury's role in setting the framework, and the Financial Conduct Authority supervises how banks and building societies meet the rules.