The UK Parliament’s Treasury Committee published a report warning that declining acceptance of physical cash, if not addressed by the Government, could create a two-tier society and leave vulnerable people paying more for essential goods and services. It called for vastly improved monitoring and reporting of cash acceptance levels to allow the Treasury and others to assess the scale of the issue. The report notes there is currently no UK legislation specifying cash acceptance for goods and services, allowing businesses and organisations to refuse cash without a legal duty to accommodate customers’ needs. Evidence from groups including people with learning disabilities, domestic abuse victims and the elderly indicated reduced cash acceptance can increase the cost of essential purchases, creating a “poverty premium” for those already at higher risk of poverty. It also highlights conflicting evidence on cash acceptance, citing LINK data from 2024 showing half of respondents had recently encountered non-acceptance or discouragement of cash use, while a Savanta poll found 98% of small businesses said they accepted cash. The Committee also pointed to resilience benefits of maintaining the ability to pay with cash, including increased withdrawals during recent bank outages, and noted the Economic Secretary to the Treasury told the Committee there were no plans to compel businesses to accept cash, while MPs argued mandating acceptance may become necessary in future if cash users are not adequately supported. The Committee indicated its scrutiny of cash acceptance will continue.

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