MP report highlights need for cash acceptance as Bira claims high street retailers must be considered

Declining cash acceptance could lead to a ‘two-tier society’, a new report from the Treasury Committee has warned, with Bira emphasising that independent retailers must be considered in any future decisions on mandating cash payments.

The report highlights concerns from vulnerable groups and raises the possibility that the Government may need to mandate cash acceptance in the future, leading Bira to stress the need to consider the impact on independent retailers.

The Committee’s report warns that a lack of Government action on cash acceptance could particularly affect vulnerable groups such as people with learning disabilities, domestic abuse survivors, and the elderly, with these groups telling MPs that reduced cash acceptance made buying essentials more expensive or difficult, effectively creating a ‘poverty premium’.

There is currently no legislation requiring businesses in the UK to accept cash and the Treasury Committee has also highlighted the lack of reliable data on cash acceptance, with inconsistent findings between consumer and business surveys.

Chair of the Treasury Committee, Dame Meg Hillier MP, said: “The Government is in the dark on how widely cash is being accepted and that is completely unsustainable. We are at risk of a two-tier society where the most vulnerable bear the brunt and this needs to be a wakeup call.

“Our Committee has sought to give a voice to those groups which are at severe risk of not being heard by Government policymakers. A sizeable minority depend on being able to use cash and they must not be forgotten by Whitehall. 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.”

Bira survey research from 2023 indicated that 98% of businesses accepted cash, slightly higher than the 97% who accept credit/debit card, while 89% of respondents stated that they do not see themselves ceasing acceptance of cash in the foreseeable future. In addition, the main two reasons causing Bira members to consider stopping accepting cash altogether would be bank and post office closures, or if fewer customers wanted to pay with cash.

The increased number of closures of physical high street banks remains an issue for independent retailers accepting cash, with initiatives such as Cash Access UK, which is working to introduce banking hubs on high streets, becoming increasingly vital to help businesses with cash deposits and withdrawls.

Mr Goodacre added: “There must be plans to maintain bank presence on the high street. Initiatives like Cash Access UK are aiming to ensure bank presence in some form, but there must be readily available ways for retailers to deal with cash.”

For more information and resources on the future of banking access, Bira has created a dedicated resource for retailers: Banking Hubs and Deposit Solutions.

Click here to view the full Treasury Committee report.