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.
- Treasure Committee
- Inquiry: Acceptance of cash
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.
- Are there groups in society which disproportionately rely on businesses and public services accepting physical cash?
- What challenges do they face?
- 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?
- 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?
- What would the costs to private firms and the public sector be from any imposed requirements to always accept physical cash?
- 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?
- Are there any other areas or particular sectors where a decline in cash acceptance would cause problems?