Kathrine Frich
Continued erosion of cash acceptance could lead to a “two-tier society.”
Continued erosion of cash acceptance could lead to a “two-tier society.”
Bank of England to Keep Tabs on Cash Acceptance in UK
The Bank of England has confirmed it will continue monitoring how widely physical cash is accepted by businesses, amid growing concerns over the decline in cash usage.
The move comes in response to a Treasury Committee report urging action to protect consumers who still rely on notes and coins.
Extra Survey Question to Track Consumer Experience
Since January, the Bank has included a specific question in its consumer surveys, asking people how they’re affected when a store refuses cash.
This data will be collected regularly to help policymakers understand the real-world impact of a cashless shift.
Many Forced to Walk Away Without Buying
Survey findings show that when faced with a cash-only refusal, 8% of people had to shop elsewhere, while 6% abandoned the purchase entirely.
These figures show the practical inconvenience and exclusion felt by those unable or unwilling to go cashless.
Two-Tier Society Warning from MPs
The Treasury Committee warned that continued erosion of cash acceptance could lead to a “two-tier society,” leaving vulnerable groups behind.
People with disabilities, older adults, and domestic abuse survivors were among those most at risk of exclusion.
Businesses Can Still Refuse Cash Legally
Despite these concerns, businesses in the UK are currently under no legal obligation to accept cash.
That means shops, public services, and even local councils can operate entirely cash-free if they choose to.
Local Services Going Cashless Too
The committee heard testimony that public transport and motorist services are increasingly cashless.
Charities also reported difficulties accessing local authority services that now expect card payments only, potentially shutting out those without access to digital banking.
Government Monitoring, But No Legal Action Yet
Economic Secretary to the Treasury, Emma Reynolds, told MPs in January that the Government has “no plans” to legally require cash acceptance.
For now, the approach is focused on monitoring and data collection rather than enforcement.
Financial Inclusion Strategy on the Horizon
Although monitoring efforts are seen as a step forward, many are calling for more robust safeguards.
The Government is expected to outline further action in its upcoming Financial Inclusion Strategy, which campaigners hope will contain stronger protections.
Chair of Treasury Committee Calls for More
Dame Meg Hillier, chair of the Treasury Committee, welcomed the Bank’s commitment but stressed the need for follow-through.
“We expect to see further positive measures to protect the most vulnerable,” she said, reinforcing the need for practical change not just observation.
