FCA cash access rules come into effect

The Financial Conduct Authority's access to cash rules came into force on September 18th 2024, according to the government's response to the Treasury Committee's report on cash acceptance¹. The rules say banks must not close services unless they have assessed the area and found that the closure would not impact withdrawal and deposit services². Parliament gave the FCA responsibility for maintaining cash access through the Financial Services and Markets Act 2023².

Assessments are modelled on an earlier voluntary scheme run by LINK, the body that connects the ATM network to banks and building societies, but use a wider range of criteria, which should result in more areas having services protected or new services recommended². LINK has recommended 77 banking hubs since the rules took effect, including 25 that would not have qualified or were previously rejected under the old regime, along with 21 deposit solutions and improvements to services in 15 locations that would not have been possible without the FCA's rules¹. There are now over 70 temporary hubs open while permanent hubs are completed¹.

The rules sit alongside other measures. In September 2024 the government secured a commitment from industry to ensure the rollout of 350 banking hubs by the end of this parliament¹. On 5 June 2025, HM Treasury recognised twelve firms as "market significant" for the provision of wholesale cash services, bringing them under the Bank of England's oversight regime with effect from 12 June¹. The FCA has committed to undertaking and publishing a formal review of the regime's effectiveness in due course, and intends to confirm its timings to the Treasury Committee in writing in autumn 2025¹.

The legislation did not extend to wider banking services. During the passage of the act, Labour tabled new clauses to that effect; the government did not support them, with then Treasury minister Andrew Griffith noting the development of sector-led banking hubs and saying it would not be proportionate to intervene in the market through legislation, and Labour withdrew the clauses². The act also did not directly address whether businesses accept cash².

Why it matters for households

The rules apply to banks and building societies designated by the UK Government, which must assess and fill gaps, or potential gaps, in cash access provision³. They do not give the FCA power to prevent the closure of a bank branch, but banks must fully explain a decision to close, particularly where closures would leave significant gaps in local cash access³.

Cash payments accounted for 9% of all payments in 2024². In 2024, 26% of UK adults with a bank account had used face-to-face banking services in a branch in the previous year, and 7% had not used online or mobile banking in the last year². Overall, 5% of UK adults were heavy users of cash, paying for everything or most things in cash; among those who were digitally excluded, 24% were heavy users of cash, and about two thirds of that group did not bank online or use a mobile app in the last year².

Around 6,700 bank and building society branches have closed in the UK since January 2015, equivalent to 68% of branches open at that time, and the number of ATMs has fallen by 40% since 2015². In Northern Ireland, 52 bank branches closed between May 2020 and January 2023, some 27% of the total network, and the Consumer Council's further analysis suggests the figure could reach 40% in 2025³. Living in Northern Ireland makes an individual more than twice as likely to rely on cash as a similar individual in England³.

What happens next

The FCA intends to confirm the timing of its formal review of the regime to the Treasury Committee in writing in autumn 2025¹. The UK Government announced in December 2024 that it would develop a Financial Inclusion Strategy, and set up a Financial Inclusion Committee in April 2025 to support its development, which will report by the end of 2025³. The government has said it will publish the strategy later in 2025¹.