Trade Union Urges Legislation to Protect Cash Use Amid Bank Closures
The trade union, GMB, is calling for the right to use cash to be enshrined in law in order to safeguard individuals in the face of mass bank closures. The GMB, one of the largest trade unions in Britain, warned of the real and disturbing consequences of numerous High Street bank closures. With many establishments now only accepting card or digital payments, the union argues that low-paid workers, older individuals, and small businesses are at a greater risk of financial crime due to a lack of digital payment skills. Consequently, the GMB is seeking legislation similar to that implemented in US states like New Jersey and Connecticut, which protect the legal right to pay in cash for goods and services. They also want to see a requirement for banks and ATM outlets to offer a network of free-to-use cash deposit and withdrawal services across the country.
The GMB, along with Aegis, the financial services union, will present their campaign at the Trades Union Congress (TUC) annual conference, seeking support from delegates. However, Chancellor Rishi Sunak expressed doubt about imposing such restrictions on businesses, stating that it would not be appropriate for the government to intervene.
The rise in businesses favoring non-cash payment methods corresponds to the closure of numerous banks and building societies. Since January 2015, approximately 5,600 branches have shuttered, with an average of 54 closures per month, according to consumer group Which?. Furthermore, 427 branches have closed in 2023 alone, and an additional 220 are projected to close this year, bringing the total to 647.
GMB General Secretary, Gary Smith, highlighted the dire consequences of this trend, warning that millions of vulnerable consumers would be left with limited access to their cash. Smith emphasized that digital payment methods do not accommodate everyone and that the loss of face-to-face banking services across the country poses a significant problem.
The trade union’s campaign is both timely and relevant, as it seeks to protect individuals who may struggle with digital payments due to limited digital literacy, age, or other factors. By advocating for legislation that guarantees the right to use cash and obliges banks and ATMs to provide accessible cash services, the GMB aims to address the potential harm caused by the closure of bank branches and the increased reliance on digital transactions.
