The future of cash acceptance in the UK is also facing a huge spotlight. This comes after a damning report from the Treasury Committee, chaired by Dame Meg Hillier, only a few weeks ago. The report’s recommendations highlight the need for better cash acceptance monitoring and reporting in every sector. A large portion of the population continues to utilize cash transactions. That begs the question of whether we are marginalizing excluded communities in our growing cashless world.
Dame Meg Hillier said, “A large minority still rely on being able to use cash. This statement highlights why we must make sure cash continues to be an available form of payment. In light of the evidence heard, the committee concluded that the government should consider requiring cash acceptance in specific circumstances. This policy change would go a long way toward protecting individuals who still use cash.
Perhaps the most significant takeaway of this report is the continuing evolution of the debate about cash’s role. It is arguably the most promising development since the Access to Cash Review in 2019. The Treasury Committee This is not just an academic or bureaucratic desire – cash acceptance tracking needs to be vastly stepped up. They argue the existing transparency – for those who know how to navigate it – is just not enough.
Ron Delnevo of the Payments Choice Alliance says he’s dismayed. He slammed the committee for allegedly adopting a “procrastinating approach” to cash acceptance. His concerns are emblematic of the mounting frustration among stakeholders who want to see immediate action to attack this urgent crisis.
In practical terms many small businesses across the country have already started making the switch as consumers clearly express their changing payment preferences. Tom Cresswell who operates The Fruit Machine greengrocer stall found that a majority of his customers no longer carry cash and want to pay by card. He stands at his stall, offering punnets of strawberries priced at £4 a box, illustrating how shifting payment trends shape daily commerce.
Chris Ilsley has been operating his plant stall, CI Plants, at Epsom market for 13 years. Recently, he began to notice a change — a big one — in how his customers are creating and receiving payments. He only took cash payments at first. Today, about 70%-80% of his sales are card payments! For one, this transition is a big part of more widespread changes in consumer behavior and preferences.
The committee’s report is released against a backdrop of changing fiscal practices in several countries. Countries such as Australia and federal members in the EU have made impressive strides. They’re not just providing valuable expertise to advocacy organizations; they’re actively advocating that regulations require essential services to accept cash where needed. This trend has led many to consider whether and how similar measures should be taken in the UK.
Dame Meg Hillier on a visit to Darlington’s Victorian Covered Market on her national cash inquiry bus tour. She took a deep dive into how small businesses are responding to these trends. She told us, “The national government has no idea how far cash is accepted. This is totally unsustainable.” There’s no question that her remarks should serve as a wake up call to everyone. Policymakers must weigh the significant public benefit of cash transactions.
A recent deal makes matters much worse. It enables customers of 30 different banks and building societies to use their local post office to withdraw and deposit cash until at least the end of 2030. This setup comforts the people who need cash the most. It begs the larger question of long-term accessibility, as digital transactions in every aspect of our lives spread.
