Bank of England will monitor cash acceptance on ongoing basis

The UK Government has said the Bank of England will monitor cash acceptance on an ongoing basis, following a Treasury Committee report which raised concerns about the future of coins and banknotes.

In its response to the report, the Government said the Bank had committed to continuing to include an additional question on cash acceptance in its survey of consumers, after it was introduced in January.

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Cash free

The response said: “The Bank of England regularly collects data on consumers’ payment preferences, including the consumer experience of cash acceptance. In January, the Bank of England expanded this data collection with a new question seeking to understand the impact of a business refusing cash on individuals.

“Where consumers did encounter a cash free store, 8% had to go to a different store to complete their purchase and 6% did not purchase the item they wanted at all.

“The Bank of England has committed to continuing to include this additional question on cash acceptance in its surveys of consumers, allowing the Government another avenue to monitor cash acceptance levels and the impact of cash acceptance on an ongoing basis, alongside data from industry.”

The committee has highlighted how UK businesses and organisations can choose to refuse cash with no legal duty to accommodate customers’ varying needs.

Its report, published earlier this year, warned that a lack of action to tackle declining cash acceptance could lead to a two-tier society with the most vulnerable bearing the cost. MPs called for improved monitoring.

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Vulnerable groups

The committee highlighted that vulnerable groups, such as people with learning disabilities, domestic abuse victims and the elderly, could be particularly affected.

It said witnesses had highlighted public transport and infrastructure for motorists as areas where cash acceptance has become less common.

Charities and consumers also told the committee that local government and local government-funded services are increasingly cashless.

In January, economic secretary to the Treasury Emma Reynolds told a Treasury Committee hearing that the Government had “no plans” to regulate businesses to compel them to accept cash – big or small.

But the committee’s report argued that 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.

Treasury Committee chairwoman Dame Meg Hillier said: “The commitment from the Bank of England to continue monitoring cash acceptance is a positive first step but given the Government agree with our views in the main, we expect to see further positive measures on protecting the most vulnerable when they publish their Financial Inclusion Strategy.”