HM Treasury Committee report - Access to Cash

A recent report by the Treasury Committee explores concerns around the declining acceptance of cash in the UK and its potential impact on vulnerable groups. The report highlights that certain individuals—such as older people, domestic abuse survivors, and those with learning disabilities—may face challenges accessing essential goods and services when businesses do not accept cash. This can lead to higher costs for some, often referred to as a "poverty premium".

Currently, UK legislation does not require businesses to accept physical currency. The HM Treasury Committee has indicated that evidence on actual cash acceptance levels is inconsistent: while LINK reported that 50% of people had encountered cash refusal or discouragement, 98% of small businesses surveyed by Savanta claimed to accept it.

The Committee calls for improved monitoring and data collection on cash acceptance and suggests the UK Government may eventually need to mandate cash acceptance to ensure inclusivity. It also points to the role of cash in national resilience, especially during digital service outages.

While the Economic Secretary to the Treasury has stated there are no plans to require businesses to accept cash, the report raises the possibility that intervention may become necessary if voluntary acceptance continues to decline.

You can read the full report here.