Shops and service providers could ultimately be required to accept cash payments in order to safeguard vulnerable groups that depend on physical currency, lawmakers have indicated.
A recent Treasury Committee report examining cash acceptance stopped short of proposing immediate legislative action, yet urged the government to enhance its oversight and data collection regarding the issue.
“A time may arise when it is necessary for HM Treasury to enforce cash acceptance if adequate protections are not established for those reliant on cash,” the committee stated in its report.
Several countries, including Australia and certain regions of the EU, have introduced or are considering legal measures obligating cash acceptance in essential services under specific circumstances.
During the inquiry, a government minister testified that there are currently no plans to mandate that businesses accept cash.
At present, UK retailers and service providers may choose which payment forms they accept.
With the growing trend of card-only establishments, the committee cautioned that prices for essentials could climb at the remaining outlets still accepting cash.
This scenario could result in a “poverty premium” impacting both those who rely on cash for budgeting as well as vulnerable populations, such as elderly citizens and individuals with learning disabilities.
“A significant minority still depend on cash access,” noted Dame Meg Hillier, chair of the Treasury Committee.
She described the findings as a “wake-up call” regarding the risks faced by those adversely affected by declining cash usage.
The committee has called for the government to significantly improve surveillance and reporting on the levels of cash acceptance.
Failure to do so, it warned, could lead to the exclusion of certain groups from vital services including leisure venues and public transportation, with recent testimony highlighting issues such as cash-only motorists being unable to pay for parking.
“The government currently lacks reliable data on the acceptance of cash—an untenable position,” Dame Meg asserted.
Particular concern was voiced for those experiencing domestic or financial abuse, for whom cash can be vital for privacy and independence from abusive relationships.
The committee’s publication marks one of the most influential contributions to the ongoing debate about the future of physical currency since the Access to Cash Review in 2019, which called for urgent action to ensure the viability of cash.
The latest findings highlight that, for certain businesses—such as market stallholders—accepting cash remains crucial to their livelihoods.
Epsom’s historic market, dating back centuries, has witnessed most shoppers transition to digital payments in recent years.
Chris Ilsley, who has operated CI Plants at the market for 13 years, recalls that payment was once entirely cash-based, yet now up to 80 percent of transactions are by card.
Ilsley says he accommodates all forms of payment, although he notes cards can be simpler, if slightly slower to process.
“We’ll accept any method,” he said, adding, “I prefer older shoppers to pay by card for their own security.”
Similarly, at The Fruit Machine greengrocer stall, Tom Cresswell points out most of his customers now use cards, particularly younger visitors who pay with phones or smartwatches.
“Older gentlemen still tend to use cash. We prioritize whatever makes payments easy for our customers,” Cresswell explained.
The report coincides with a renewed agreement between the Post Office and banks, designed to maintain customer access to essential banking services at local post office counters.
This arrangement, extending through 2030, allows customers of 30 banks and building societies to use Post Office branches for cash withdrawals, deposits, balance checks, and cheque deposits.
Some advocates have urged that legal measures to require cash acceptance should be introduced immediately.
Ron Delnevo of the Payments Choice Alliance criticized what he described as the committee’s “delaying tactics.”
Readers and viewers have also voiced strong support for the continued acceptance of cash, frequently citing its role in effective budgeting.
A Treasury spokesperson affirmed the government’s objective of establishing 350 “banking hubs” nationwide.
“We support businesses that wish to keep accepting cash, and recent Financial Conduct Authority regulations help facilitate this by making deposits easier for them,” the spokesperson added.
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