The UK could force businesses to take cash payments
The Bank of England has announced that it will monitor cash acceptance on an ongoing basis following a Treasury Select Committee report published earlier this year. This will mean the government has a public sector source for monitoring cash acceptance levels, rather than relying solely on private sector data.
But MPs are pushing for further intervention to make sure that no one is left behind in a cashless society.
The acceptance of physical currency for goods and services in the UK is not currently specified in legislation. This means that UK businesses and organisations could choose not to accept cash, with no legal duty to accommodate customers’ varying needs.
However, the Committee’s Report, published in January, warned that a lack of action to tackle declining cash acceptance could lead to a two-tier society with the most vulnerable bearing the cost.
It highlighted how organisations not accepting cash disproportionately affected certain vulnerable groups, such as people with learning disabilities, domestic abuse victims and the elderly.
MPs called for improved monitoring to avoid creating a two-tier system where vulnerable groups become excluded from community spaces such as coffee shops, leisure centres, theatres and public transport.
Mandating cash payments?
When appearing before the Committee, the Economic Secretary to the Treasury stated, “We have no plans to regulate businesses, big or small, to compel them to accept cash”.
However, the Committee’s Report argued that there may come a time in the future when it becomes necessary for the Treasury to mandate cash acceptance if those who rely on physical cash are not adequately supported.
“In its response to our report, the Government consistently agrees with our Committee’s view that action needs to be taken to avoid financially excluding vulnerable groups, which will only end up with them becoming excluded from certain public spaces,” said Chair of the Treasury Select Committee, Dame Meg Hillier MP
“The commitment from the Bank of England to continue monitoring cash acceptance is a positive first step, but given that the Government agrees with our views in the main, we expect to see further positive measures on protecting the most vulnerable when they publish their Financial Inclusion Strategy.”
