The Government has published its response to the Lords Liaison Committee report on tackling financial exclusion. Key elements of the response consider:
- access to cash: the response notes that the FS Act 2021 will allow shops and other businesses to provide cash back without a purchase from June – and the Government will consult further on how to protect access to cash;
- digital inclusion: the Government agrees this should be tackled alongside financial inclusion, and recognises non-digital channels continue to be important;
- basic bank accounts: the Government regularly engages with the banks that are required to provide free bank accounts;
- bank branch and ATM closures: the Government recognises the impact of these and the importance of maintaining access, including through Post Offices generally and the trialled “BankHubs”. The Government remains fully supportive of the Post Office Banking Framework agreement;
- control options for gambling blocks;
- affordable credit: the response gives no indication of when the BNPL legislation will be timetabled, and says it will continue to work with industry on no and low interest pilots;
- help to save : the Government is not inclined to extend the period for the scheme;
- debt advice;
- financial education; and
- FCA’s objectives and the duty of care: many of the observations throughout the paper refer to FCA’s proposals; and
- the Government’s financial inclusion policy: a paper will be published in August.