Shops and firms will not be forced to accept cash

The UK Treasury's Economic Secretary, Emma Reynolds, stated that the government will not force shops and service companies to accept cash, despite millions of vulnerable people relying on it for payments. This statement addresses concerns that the increasing trend of places like coffee shops, trains, and leisure centers going cashless could exclude certain segments of the population.

Reynolds told MPs on the Treasury Committee that the UK is not going to become a cashless society anytime soon. The government’s current focus is on ensuring that everyone has access to cash, for example, through the establishment of new banking hubs and improving people’s digital skills. While cash is legal tender in the UK, businesses are not obligated to serve customers who can only pay with notes and coins.

Some countries, like Australia, are planning rules to mandate that essential service sectors accept cash. However, Reynolds effectively ruled out similar measures for the UK. “We have no plans to regulate businesses—whether they are large or small—to force them to accept cash,” she said. She also stated that the UK is "far from" being a cashless society, with convenience stores planning to continue accepting notes and coins for years to come. However, she emphasized that addressing the digital exclusion of those who may struggle remains crucial.

Committee members pointed out that evidence they received indicated that victims of domestic and economic abuse have stated that cash is their only means of escape. Even after escaping, some found they were unable to pay for their children’s school lunches with cash. While card payments dominate and consumers increasingly use smartphones for payments, data from the British Retail Consortium (BRC) shows that cash was still used in one in five store transactions last year, as shoppers find it helps them budget better.

The Treasury Committee will make recommendations in the coming weeks following its inquiry into cash acceptance. Reynolds’ testimony was the final session, after which they heard from vulnerable people who still rely on cash payments. Constantine Lewis told the BBC after giving evidence that he wants a choice in how he pays. “For older people, when they use cash, they feel they are in control,” the 84-year-old said. “Young people will get old one day, and they might have the same problems as us—they might start forgetting their PINs. For people who get on the bus and pay with their phone—I have no objection. But I can’t do that, I don’t know how to do it.”

Caroline Cowley, from Edinburgh, who has a disability, said that every penny in her life counts. “Cash is mainly for budgeting,” the 41-year-old said after giving evidence. “If you physically have the money in your wallet, it’s easier to keep track of how much you’ve got.” She said that digital payments risk her going into overdraft and facing unaffordable interest and fees. She also stated that she is unable to use cash if she wants to go swimming at her local leisure center, a situation that is creating a “two-tier society”.