Tag: Treasury Committee

Risk of ‘two-tier society’ if UK Government does not act on cash acceptance

A lack of action from the Government to tackle declining cash acceptance could lead to a two-tier society with the most vulnerable bearing the cost, a new report by the Treasury Committee finds. 

The Committee heard directly from vulnerable groups, including people with learning disabilities, domestic abuse victims and the elderly, that buying essential goods and services can cost more as the number of places where they can spend their cash is reduced.

People who are already at increased risk of poverty will, therefore, face a poverty premium if cash is not widely accepted by businesses and other organisations. 

 The acceptance of physical currency for goods and services in the UK is not currently specified in any legislation. This means UK businesses and organisations could choose not to accept cash with no legal duty to accommodate customers’ varying needs. 

Evidence submitted during the course of the inquiry sets out the challenge when attempting to assess levels of cash acceptance in the UK. For example, data from LINK in 2024 found half of respondents had been somewhere that did not accept cash or discouraged cash usage in the previous eight weeks. However, when polled by Savanta, 98% of small businesses said they accepted cash. 

The lack of consistent evidence makes it difficult for anyone, including the Treasury, to determine the state of cash acceptance in the UK. In its report, the Treasury Committee calls on the Government to undertake vastly improved monitoring and reporting of cash acceptance levels. If it doesn’t, it risks creating a two-tier system where vulnerable groups become excluded from community spaces such as leisure centres, theatres and public transport. 

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”.  

Having heard evidence on the impact of declining cash acceptance on vulnerable communities, MPs on the Committee believe 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. 

The report also highlights the national resilience benefits of maintaining the ability to spend physical cash, particularly in relation to recent bank outages which Members were told led to a surge in cash withdrawals. 

Chair of the Treasury Select Committee, Dame Meg Hillier MP said: “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. 

“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. 

“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.” 

Acceptance of cash to be investigated by Treasury Committee

Westminster’s Treasury Committee is asking for evidence as it examines whether rules are needed to govern the acceptance of physical cash in the UK, ahead of public sessions which could begin in December. 

Though the use of cash has declined over recent years, it remains a vital resource to many, with around 3.1 million people in the UK relying almost entirely on cash as a form of payment. Research indicates that the use of cash can provide a vital lifeline to groups such as those with long term poor health or people at risk of economic abuse. 

The Bank of England has noted that the decline in cash usage is increasing the infrastructure costs of retaining physical cash as a viable payment method, which could lead to disruption for businesses and consumers. 

Others have highlighted the dangers of an overreliance on digital payments, suggesting cash acceptance should be viewed as a form of civil preparedness. There are currently no regulations which require businesses to accept cash.  

Submissions can be made via the Treasury Committee website evidence portal. 

Call for evidence

Evidence submitted to the Committee should seek to answer one or more of the following questions: 

What is the current state of, and recent trends in, physical cash acceptance in the UK? Any forecasts on physical cash acceptance would be welcome.  

  1. Are there groups in society which disproportionately rely on businesses and public services accepting physical cash?
    • What challenges do they face? 
  2. Should the Government require parts of the economy to always accept physical cash?
    • Are there individual sectors of the economy where physical cash acceptance is particularly important, and should be protected?
  3. What are the practical challenges that businesses might face from having to always accept physical cash?
    • How do these challenges differ between large and small businesses?
  4. What would the costs to private firms and the public sector be from any imposed requirements to always accept physical cash?
  5. How might any requirement for certain firms and public services to always accept physical cash affect financial services firms, especially those related to the provision of physical cash?
  6. Are there any other areas or particular sectors where a decline in cash acceptance would cause problems? 

Treasury Committee queries public sector organisations over use of Fujitsu

WESTMINSTER’s Treasury Committee has asked His Majesty’s Treasury, and all associated agencies and public bodies, to send them details of any contracts awarded by their organisation to Fujitsu Services Ltd, or any other Fujitsu Global-owned entities, since 2019.

The international technology corporation has faced renewed questions over its role in the Post Office Horizon Scandal in recent weeks.

The Committee aims to understand the extent to which the company has continued to be awarded government contracts with HM Treasury-affiliated organisations since the High Court ruling in 2019. 

Questions include whether the contracts went through a tendering process, the extent to which the company’s role in the scandal was considered as part of the due diligence process and whether they have considered terminating contracts with the company at any stage. 

Treasury Committee Chair, Harriett Baldwin, said: “The public outcry regarding the Post Office sub-postmaster scandal is entirely justified, and I know I speak for the whole Committee when I express my horror at the injustices the victims faced. 

“It’s clear that Fujitsu has questions to answer over its conduct. I think it’s important we can see the extent to which taxpayer money has been spent with Fujitsu since the High Court ruling as they are simultaneously assessed on their fitness to remain a government supplier.”