The UK's Treasury Committee has floated the idea of introducing legislation to force shops to accept cash in the future, warning that 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.
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.
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.
In its report, the Treasury Committee calls on the Government to undertake vastly improved monitoring and reporting of cash acceptance levels. Failure to do so would create a two-tier system, the Committee warns, in which vulnerable groups could 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 UK is not alone in fretting about the disappearance of cash. Norway's progress to become one of the world's first cashless economy hit a roadblock in October under new rules passed by Parliament that oblige shops to accept cash payments alongside other mobile payment and card options.In neighbouring Sweden, the country's central bank has also signalled its approval for using legislation to maintain the use of cash under proposals presented by a Government-sponsored inquiry at the end of last year.
The UK 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 says: “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.”