There are growing calls from MPs that shops and service providers may eventually need to be required by law to accept cash payments, in order to safeguard vulnerable groups who depend on physical money.
A recent Treasury Committee report examining the acceptance of cash stopped short of urging immediate legal changes, but insisted the government must enhance its vigilance on this critical issue.
The report stated: “A time may come when HM Treasury is compelled to mandate cash acceptance if sufficient protections are not in place for individuals relying on cash transactions.”
Other jurisdictions, including Australia and segments of the EU, are already moving toward making cash compulsory for key services in certain scenarios.
In response to the inquiry, a government minister confirmed there are currently no plans to make cash acceptance a legal requirement.
At present, retailers and service providers have autonomy over which payment forms they accept.
However, as more businesses transition to card-only payments, the committee warned that consumers could endure higher prices for essential items and services in the limited outlets that still handle cash.
This trend risks imposing a “poverty premium” on individuals who use cash for budgeting purposes, as well as on vulnerable populations, including people with learning disabilities and older adults.
“A significant minority remain dependent on cash,” noted Dame Meg Hillier, chair of the influential Treasury Committee.
She described the report as a “wake-up call” concerning the potential neglect of those disadvantaged by the decreasing prevalence of banknotes and coins.
The Committee is urging the government to “substantially enhance” the monitoring and reporting of cash acceptance.
Failure to act, it cautions, could result in exclusion from services such as leisure centres, theatres, and public transport, as well as situations such as motorists struggling in car parks that only accept non-cash payments.
“The government currently has insufficient insight into how widely cash is being accepted—a situation that is entirely unsustainable,” Dame Meg stated.
The committee also spotlighted those at risk of domestic or economic abuse, who often need to use cash to evade tracking and to preserve financial autonomy.
This latest report marks a significant milestone in the continuing discourse over the future of physical currency, following the influential Access to Cash Review published in 2019, which called for urgent support to maintain the viability of cash.
It also highlights that for certain enterprises, including market traders, cash remains essential to their business operations.
In towns like Epsom, Surrey, market trading has thrived for centuries, yet only recently have vendors noticed the majority of customers choosing electronic payments over cash.
Chris Ilsley, who has run CI Plants for 13 years, remembers when cash was the sole mode of payment; now, around 70-80% of payments are made by card.
Amid his display of geraniums, Ilsley shared that though he is content to accept any payment type, card transactions are generally easier, albeit sometimes slower.
“We’ll accept all forms of payment,” he explained. “For security, I actually prefer older customers use their cards and keep their purses safely inside.”
At The Fruit Machine, another greengrocery stall, Tom Cresswell also observes that most customers now use cards.
“Young people never use cash; they always pay by phone or smartwatch,” said the 52-year-old.
“Older men tend to pay in cash. The goal is simply to do what’s most convenient for each customer.”
The publication of the report coincides with the Post Office announcing a contract extension with banks, enabling customers to access basic banking needs at post office counters through 2030.
The agreement covers 30 banks and building societies, granting their customers the ability to withdraw and deposit cash, check balances and pay in cheques at local branches.
Meanwhile, some campaigners are calling for immediate legislative action to enforce cash acceptance.
Ron Delnevo of the Payments Choice Alliance expressed disappointment with what he described as the committee’s “procrastination.”
In response, the Treasury reiterated its commitment to establishing 350 banking hubs nationwide.
A spokesperson noted: “We welcome businesses that choose to continue accepting cash, and recent FCA regulations are designed to help them by making deposits easier.”
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