Report says half of people have recently been somewhere that didn’t accept cash but warns the trend is damaging those who still rely on using notes and coins
Firms could be forced to accept coins and banks to prevent the UK “sleepwalking” into a cashless society, MPs have suggested.
In a report, the Treasury Committee says the growing number of businesses and other places refusing to accept cash could lead to a two-tier society, with the most vulnerable bearing the cost. It heard from vulnerable groups, including people with learning disabilities, domestic abuse victims and the elderly, who warned of the risk of becoming excluded.
MPs said they believe there may be a time when it becomes necessary for the Treasury to mandate cash acceptance, if those who rely on physical cash are not properly supported.
Its report warned businesses and organisations can choose not to accept cash, with no legal duty to accommodate customers’ varying needs. It added: “For people who do not have bank accounts, who are sometimes referred to as the ‘unbanked’, being able to spend physical cash is vital.”
Dame Meg Hillier, chair of the committee, 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.”
Economic secretary to the Treasury Emma Reynolds told the committee: “We have no plans to regulate businesses to compel them to accept cash – big or small.” When it was put to her that certain marginalised people could be excluded, she said: “I think our solution to that, through the financial inclusion work that we’re doing, is to try to tackle digital exclusion.”
The report also highlighted the national importance of maintaining the ability to spend physical cash, particularly following recent bank outages, which MPs were told led to a surge in cash withdrawals.
Data from cash access and ATM network Link in 2024 indicated that half of people had been somewhere that did not accept cash or discouraged cash usage in the previous eight weeks. Trade body UK Finance says cash was used for 51% of all payments in 2013, but by 2023 this had fallen to 12%.
John Howells, chief executive of Link, said: “This timely report is further evidence that cash continues to be absolutely critical. Critical for the millions of people who rely on it day in, day out, and critical for national security and resilience.”
Sam Smethers, chief executive of charity Surviving Economic Abuse, said: “Abusers control survivors’ bank accounts or prevent them from opening one to control and trap them. This forces many to secretly save cash or flee with only the clothes on their backs and change in their pockets.”
Rocio Concha, director of policy and advocacy at Which?, said its own research had found that as many as one in seven people have struggled to use cash to pay in shops in the past, adding: “and as card-only payments become increasingly popular, there is a real risk that those who rely on cash could fall through the cracks and struggle to buy even essential items. Taking a more consistent approach to monitoring cash acceptance would be a welcome move to ensure the Government can properly get to grips with the UK’s rapidly evolving payments landscape, but it’s clear that this is just one part of a bigger picture.
“Bank branches have been closing at an alarming rate, chipping away at the infrastructure which makes it easy for local businesses to continue taking cash payments. Until the government meets its commitment to roll out hundreds of new banking hubs, it’s likely that those who rely on cash will both increasingly struggle to access their money, and to spend it. “
D’Arcy, Deputy, chief executive of consumer champion Martin Lewis’ charity the Money and Mental Health Policy Institute, said: “For many of us with mental health problems, cash is hugely important in our day-to-day lives. It helps people to budget, stay in control of their spending or to get support from a family member or friend to manage money.
“As we move towards an increasingly digital society, it’s vital that we protect the use and acceptance of cash for those who rely on it, and we welcome the Treasury Select Committee’s call for the government to prioritise this issue.”
