Businesses No Longer Required to Accept Cash

Businesses No Longer Required to Accept Cash.

Shops and service providers will not be required to accept cash, according to a Government Minister, despite worries that many vulnerable individuals depend on it.

Emma Reynolds, the newly appointed economic secretary to the Treasury, faced inquiries regarding the exclusion of customers from coffee shops, trains, and leisure centers that have stopped accepting cash payments.

However, she informed members of the Treasury Committee that the UK is unlikely to transition to a cashless society in the near future.

She emphasized that the government's focus is on ensuring that everyone has access to cash, including the establishment of new banking hubs, as well as enhancing digital literacy among the population.

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While cash remains legal tender in the UK, businesses are not mandated to accommodate customers who wish to pay solely with cash.

In contrast, some nations, such as Australia, are considering regulations that would require essential services to accept cash payments.

Nevertheless, Ms. Reynolds effectively dismissed the possibility of implementing such measures in the UK.

"We have no plans to regulate businesses - big or small - to compel them to accept cash," she said.

She stated that the United Kingdom is "not anywhere near" achieving a cashless society, noting that convenience stores intend to continue accepting cash for the foreseeable future. However, she emphasized that addressing digital exclusion remains crucial for individuals who may face challenges in this area.

Committee members referenced testimonies from victims of domestic and economic abuse, who indicated that cash provided them with a means of escape.

Even after successfully leaving their situations, some individuals reported difficulties in using cash to pay for their children's school meals.

Card payments are the predominant method of transaction, with an increasing number of consumers opting to use their smartphones for purchases.

Nevertheless, cash in the form of notes and coins accounted for one-fifth of retail transactions last year, as reported by the British Retail Consortium (BRC). This trend indicates that shoppers perceive cash as a more effective means of managing their budgets.

This marks the second consecutive year in which cash usage in retail settings has increased, reversing a decade-long decline.

Recommendations will be forthcoming in the next few weeks from the Treasury Committee following its investigation into the acceptance of cash.

The testimony provided by Ms. Reynolds marked the conclusion of the sessions; however, prior to this, the committee heard from individuals facing disadvantages who continue to depend on cash payments.

In remarks made after his testimony, Constantine Louis expressed his desire for greater options regarding payment methods.

"For older people, when they use cash, they feel as though they are in control," said the 84-year-old, who lives in a one-bedroom flat.

"Young people will get older one day and may have the same problems we have - they may start forgetting their Pin numbers.

"For those who get on the bus and pay with their mobile - that's fine with me. But I can't do it. I don't know how to do it."

Caroline Cawley, from Edinburgh, who has a disability stated that every penny counts in her life.

"Cash is important for budgeting reasons, mainly," the 41-year-old said after giving evidence.

"It is much easier to keep tabs of what you've got if you have it physically in your purse."

She expressed concern that digital payments could lead her to exceed her account balance, resulting in unmanageable interest charges and fees. She further stated that the refusal to accept cash, as was the case when she wished to swim at her local leisure center, was contributing to the emergence of "a two-tier society."

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The decision not to require businesses to accept cash is a step toward excluding society’s most vulnerable. While digital payments offer convenience, they also create barriers for the elderly, low-income individuals, and those without access to banking services. Cash provides financial independence, privacy, and a reliable budgeting tool, preventing overspending and debt accumulation.

For many, it remains the only viable option for daily transactions. By allowing businesses to refuse cash, the government risks deepening social inequality and marginalizing those who rely on it. A truly inclusive economy must ensure that cash remains a universally accepted means of payment.