Major update issued about future of paying in cash in UK stores
Major update issued about future of paying in cash in UK stores
Share:
A major update has been issued by the government on the acceptance of cash on the British high street. The government has confirmed that it will not force businesses to accept cash payments and will allow firms to only take card payments if they choose to do so. Economic secretary Emma Reynolds made the announcement during an appearance before MPs on the Treasury Committee earlier this week.
In November, the committee announced that it would be launching an investigation into the acceptance of cash in the UK. The new economic secretary to the Treasury was pressed on the issue of businesses such as coffee shops, trains and leisure centres, excluding people who rely on physical money by no longer accepting cash. This can include older Brits who are not digitally capable and victims of domestic and economic abuse who testified that cash provided their only escape route.
Reynolds said the government was concentrating on ensuring everyone had access to cash, and would be working to tackle digital exclusion for those who might struggle. She also noted that she didn't believe the UK would become a cashless society anytime soon.
While cash remains legal tender in the UK, businesses are not required to accept notes and coins as payment. Conversely, businesses can decline card payments and only accept cash payments, although the former is far more common across the UK. Alongside this, consumers are increasingly using their smartphones to pay for things.
Some countries, such as Australia, are planning rules that would force essential services to accept cash, although the update given by the economic secretary effectively ruled out this move in the UK. She told MPs: "We have no plans to regulate businesses - big or small - to compel them to accept cash.".
