Will shops and restaurants be forced to accept cash in the future? MPs want evidence to see if new rules are needed

MPs on the Treasury Select Committee are calling for evidence to determine whether new rules are needed to make accepting cash mandatory across Britain.

There are currently no regulations requiring businesses from shops to restaurants to accept cash, and the evidence will be used to determine its current state of acceptance in Britain.

It will look at whether businesses should always accept physical cash and how much it will cost.

The use of cash has decreased over the last decade, with people turning to mostly contactless card payments.

Is Cash King? Lawmakers want evidence on whether accepting cash is mandatory

Cash remains a ‘vital resource for many’, the Treasury Select Committee said.

“Research shows that the use of cash can provide a vital lifeline for groups such as people in long-term poor health or at risk of economic exploitation,” he added.

Around 3.1 million people in the UK rely almost exclusively on cash as a form of payment, according to data from the not-for-profit company Cash Access UK.

According to UK Finance, around 1.5 million adults used cash as their main spending method last year; This was the first increase since 2019.

He says this can be attributed to the cost of living crisis, with more people turning to cash to budget.

In 2022, only 900,000 people used coins and notes as their primary spending method.

Overall, cash use fell last year to 12 per cent of all payments, and UK Finance said 22 million adults were ‘basically cashless’.

According to the Bank of England, the decline in the use of cash is increasing the infrastructure costs of maintaining physical cash as a valid payment method, which could lead to disruption for businesses and consumers.

Others have pointed out the dangers of over-reliance on digital payments and suggested that accepting cash should be seen as a form of civil preparedness.

There are currently no regulations requiring businesses to accept cash.

Adrian Roberts, managing director of Link, told This is Money: ‘Our data consistently shows that people who are constantly reliant on cash live in the poorest parts of the country. But what’s more, they’re also more likely to be digitally excluded.’

In June this year the FCA was given new powers by the Government to ensure reasonable access to cash withdrawals and deposits.

Under the rules, banks and building societies must assess whether local communities have access to cash services such as branches and ATMs, and provide additional services where they find ‘significant gaps’.

The deadline for evidence to be presented to the Treasury Select Committee is 5pm on 2 December.

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