A lack of action from the Government to tackle declining cash
acceptance could lead to a two-tier society with the most
vulnerable bearing the cost, a new report by the Treasury
Committee finds.
The Committee heard directly from vulnerable groups, including
people with learning disabilities, domestic abuse victims and the
elderly, that buying essential goods and services can cost more
as the number of places where they can spend their cash is
reduced. People who are already at increased risk of poverty
will, therefore, face a poverty premium if cash is not widely
accepted by businesses and other organisations.
The acceptance of physical currency for goods and services in the
UK is not currently specified in any legislation. This means UK
businesses and organisations could choose not to accept cash with
no legal duty to accommodate customers' varying needs.
Evidence submitted during the course of the inquiry sets out the
challenge when attempting to assess levels of cash acceptance in
the UK. For example, data from LINK in 2024 found half of
respondents had been somewhere that did not accept cash or
discouraged cash usage in the previous eight weeks. However, when
polled by Savanta, 98% of small businesses said they accepted
cash.
The lack of consistent evidence makes it difficult for anyone,
including the Treasury, to determine the state of cash acceptance
in the UK. In its report, the Treasury Committee calls on the
Government to undertake vastly improved monitoring and reporting
of cash acceptance levels. If it doesn't, it risks creating a
two-tier system where vulnerable groups become excluded from
community spaces such as leisure centres, theatres and public
transport.
When appearing before the Committee, the Economic Secretary to
the Treasury stated, “we have no plans to regulate businesses,
big or small, to compel them to accept cash”.
Having heard evidence on the impact of declining cash acceptance
on vulnerable communities, MPs on the Committee believe there may
come a time in the future when it becomes necessary for the
Treasury to mandate cash acceptance if those who rely on physical
cash are not adequately supported.
The report also highlights the national resilience benefits of
maintaining the ability to spend physical cash, particularly in
relation to recent bank outages which
Members were told led to a surge in cash withdrawals.
Chair of the Treasury Select Committee, Dame MP said:
“The Government is in the dark on how widely cash is being
accepted and that is completely unsustainable. We are at risk of
a two-tier society where the most vulnerable bear the brunt and
this needs to be a wakeup call.
“Our Committee has sought to give a voice to those groups which
are at severe risk of not being heard by Government policymakers.
A sizeable minority depend on being able to use cash and they
must not be forgotten by Whitehall.
“As a society, we must avoid sleepwalking into a situation where
cash is no longer widely accepted. This is the beginning, not the
end, of our scrutiny of this issue. The Government needs to take
this seriously.”
