Santander’s branch closures expose a two-tier Britain, but card protection means nothing without access to cash
As someone who has spent decades advising consumers on their rights, I've always encouraged people to pay with debit or credit cards whenever possible.
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The consumer protections are invaluable: Section 75 of the Consumer Credit Act offers a safety net for purchases between £100 and £30,000, while chargeback rights provide recourse when things go wrong regardless of the spend amount so long as you claim within 120 of purhcase. These protections have saved countless consumers from financial disaster when retailers fail or goods prove faulty.
Yet Santander's announcement that it will close 95 branches this year – a fifth of its entire UK network – combined with the government's refusal to compel businesses to accept cash, has exposed a troubling paradox in our financial system. While I champion card payments every week on the LBC Consumer Hour, for their protective benefits, we risk creating exactly the kind of two-tier society we should be fighting against.
Santander's closures are part of a devastating trend. Since January 2015, over 6,300 bank and building society branches have closed across Britain – 64% of what existed just a decade ago. The bank claims 93% of the UK population will remain within 10 miles of a branch, but "10 miles" is a meaningless metric for an 84-year-old without transport, or someone with mobility issues trying to deposit their week's takings.
The timing couldn't be worse. Just as physical banking infrastructure crumbles, Economic Secretary Emma Reynolds told the Treasury Committee that the government has "no plans to regulate businesses to compel them to accept cash." Businesses, she argued, should have "flexibility" in choosing payment methods. On the surface, this sounds reasonable. Scratch beneath and the implications are devastating.
Consider 84-year-old Constantine Louis, said that cash gives older people a sense of control. Or 41-year-old Caroline Cawley from Edinburgh, who relies on cash for budgeting to avoid spiralling into overdraft fees and described being unable to pay cash at her local leisure centre as creating "a two-tier society". These aren't abstract concerns – they're real people being shut out of everyday commerce at coffee shops, on trains, and even when paying for their children's school dinners.
The uncomfortable truth is that not everyone can or wants to use cards. Age UK reports that over four million older Britons with bank accounts don't manage finances online. Victims of domestic abuse rely on cash to escape their abusers. People with learning disabilities often depend on physical money. Some simply cannot obtain bank accounts or credit cards.
Santander promises "Community Bankers" visiting local areas weekly as replacements for shuttered branches. But can a weekly visit truly replace daily banking access? Meanwhile, the bank points customers toward 11,000 Post Office branches – yet the government simultaneously allows businesses to refuse the very cash those Post Offices dispense.
The government must take decisive action. Banking hubs are a positive step – Cash Access UK has opened 211 plus over 130 deposit services nationwide. But this isn't enough. We need a statutory guarantee that every household has access to cash withdrawal and deposit facilities within a reasonable travel distance – not the mythical "10 miles" Santander trumpets, but genuinely accessible provision.
More controversially, essential services – public transport, leisure facilities, utilities – should be required to accept cash. Yes, handling cash costs businesses money. But excluding millions of citizens costs society far more.
I remain a passionate advocate for card payments and the protections they offer. But protection means nothing if you're locked out of the payment system entirely. We can have a modern, digital financial system that embraces innovation while ensuring nobody gets left behind.
Britain needs both robust consumer protection for card users and guaranteed access to cash for those who need it. Anything less creates the two-tier society we should all fear. The government must step in before branch closures and cash refusal combine to create a financial exclusion crisis we cannot reverse.
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Dean Dunham is LBC's Consumer Champion
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The views expressed are those of the authors and do not necessarily reflect the official LBC position.
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