Cash or Card Only? Why Some Say All UK Businesses Should Accept Cash
Some UK residents still rely on cash for daily transactions, raising concerns about exclusion in a digital-first economy.
Lawmakers warn that without safeguards, refusing to accept cash could deepen social inequalities.
A new warning from the UK Treasury Committee has reignited the national debate surrounding the rapid shift toward a digital economy and its unintended consequences for those still dependent on cash and physical currency.
Lawmakers are increasingly concerned that declining cash acceptance could harm vulnerable citizens, prompting discussions on potential government intervention.
In its recent coverage, GB Newshighlighted the growing calls for legislation to guarantee access to cash-based transactions.
Central to the issue is the urgent question: should businesses be forced to accept cash? The report suggests that mandating acceptance may become necessary to avoid long-term social and economic exclusion.
Treasury Report Warns of ‘Widespread Detriment’ From Declining Cash Use
The Treasury Committee has published a report highlighting the risks of diminishing cash acceptance across the UK. It notes that while digital transactions are expanding, cash remains a necessity for certain populations. The report states:
There may come a time in the future where it becomes necessary for HM Treasury to mandate cash acceptance if appropriate safeguards have not been implemented for those who need physical cash, and the level of cash acceptance begins to lead to widespread detriment.
Among the groups identified as most affected are those with learning disabilities, domestic abuse victims, and the elderly. These individuals may lack access to banking services or may rely on the anonymity and accessibility of cash for daily needs.
Treasury Urged to Provide Annual Reports on Cash Acceptance
The Committee emphasized the need for accurate data collection and reporting. It warned that a lack of oversight could result in the UK “sleepwalking” into a cashless society without fully understanding the consequences. The report demands:
HM Treasury must provide the Treasury Committee with annual reporting on cash acceptance levels and provide an analysis of HM Treasury’s view of the tolerable level of cash acceptance in society.
Without such oversight, the ability to accept cash may erode beyond recoverable levels, potentially disadvantaging entire segments of the population.
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.
Committee Chair Dame Meg Hillier MP
She emphasized the role of the Committee in representing those who often go unheard :
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.
Hillier also called on the Government to recognize the long-term importance of cash accessibility :
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.
