Dame Meg Hillier, chair of the Treasury Committee, has highlighted the critical role of cash in society, noting that “a sizeable minority depend on being able to use cash.” This announcement follows growing concerns over the deteriorating acceptance of cash in many sectors. The committee’s recent report marks a significant development in the ongoing debate regarding the future of physical currency in the UK.
The Treasury Committee’s report calling for urgent action. It urges a coordinated approach across retailers and service providers to how they track and communicate their level of cash acceptance. This recommendation is one of the key findings of the Access to Cash Review, published in 2019. The review called for swift action to safeguard the future of cash transactions. As the shift to digital payments starts to become more prevalent, worries are rising that those who still depend on cash will be pushed to the sidelines.
Australia and parts of the European Union are seeking to maintain cash as a payment option. Yet they are taking critical steps to ensure this occurs. These countries are discussing legislation that would require cash acceptance for all basic services. With this growing trend, speculation is rife as to whether the UK will do the same.
On a recent inquiry, the committee toured Darlington’s Victorian Covered Market. While there, they conducted role play exercises with local stall owners to understand their payment practices. Greengrocer Tom Cresswell owns a marketgreengrocer stall, called The Fruit Machine. He said all of his customers now want to use a card to pay. He pointed out, “Strawberries are £4 a punnet, moral argument over consumer is a pay by card now.”
Local grower Chris Ilsley, who has operated his plant stall, CI Plants, on the markets for 13 years. He shared that the way people pay has gone from being 100% cash to 70 or 80% payment by card. “When I started my plant stall, it was 100% cash,” he remarked, reflecting the broader trend impacting small businesses.
The Treasury Committee’s report stresses that without appropriate safeguards, the government may need to consider mandating cash acceptance to protect vulnerable individuals who rely on it. 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.”
“We’re very disappointed,” said Ron Delnevo, director of the Payments Choice Alliance. He thinks the committee is dragging their feet on addressing this critical issue. He reiterated the importance of Congress taking a proactive approach in order to keep up with the ever-changing world of payment methods.
These discussions have gone on to inspire an exciting new opportunity. Now, customers from 30 different banks and building societies can get cash at their local post office! This new partnership allows for easy withdrawals and deposits around the ecozone with customers being able to make balance inquiries and deposit cheques. The new deal will last through the end of 2030.
Despite these advancements, Dame Meg Hillier warned that “the government is in the dark on how widely cash is being accepted and that is completely unsustainable.” She added that there should be a granular understanding of where cash goes in all sectors, not just transportation. That awareness will inform policy discussions going forward.
The discussion on the future of cash here in the UK is reaching a boiling point. The Treasury Committee’s recent findings provide a clarion call for immediate action. Without bold action, cash will be out of reach for more people. Millions of people will be led down a path that leaves them behind in our evermore digital economy.