The UK’s Treasury Committee has proposed legislation to mandate that shops accept cash, warning that inaction by the Government could lead to a two-tier society where vulnerable populations bear the brunt of reduced cash acceptance.
Currently, there is no legal requirement for businesses in the UK to accept physical currency, allowing them to refuse cash without considering the diverse needs of customers. The Committee gathered testimonies from vulnerable groups, including individuals with learning disabilities, domestic abuse survivors, and the elderly, highlighting that as cash acceptance declines, essential goods and services become more difficult and costly to access.
In its report, the Treasury Committee urges the Government to enhance monitoring and reporting on cash acceptance levels. The Committee warns that neglecting this issue could lead to a divided system where vulnerable groups are marginalized from essential community spaces like leisure centers, theaters, and public transport.
The Economic Secretary to the Treasury stated during a Committee session that there are no plans to enforce cash acceptance regulations on businesses. MPs expressed concern that if support for those who rely on cash does not improve, it may eventually become necessary for the Treasury to mandate cash acceptance.
The issue of declining cash use is not unique to the UK. Norway’s transition toward becoming a cashless economy faced challenges when new legislation required shops to accept cash alongside digital payment options. Similarly, Sweden’s central bank has supported using legislation to ensure cash availability, as outlined in a recent government-sponsored inquiry.
The report also emphasizes the national resilience benefits of maintaining cash usage, especially in light of recent banking outages that spurred increased cash withdrawals.
Dame Meg Hillier MP, Chair of the Treasury Select Committee, stated, “As a society, we must avoid sleepwalking into a situation where cash is no longer widely accepted. This is just the beginning of our examination of this issue, and the Government must take it seriously.”