Government Responds to Cash Acceptance Concerns: Bank of England to Monitor Ongoing

Strategic Insights -

The UK government has vowed to monitor cash acceptance levels following a Treasury Committee report raising concerns about the future of coins and banknotes. The report highlighted how businesses can refuse cash without consequence, potentially leading to a two-tier society. In its response, the government acknowledged the potential impact on vulnerable groups, such as those with learning disabilities, domestic abuse victims, and the elderly. The Bank of England will continue to collect data on cash acceptance, including the percentage of consumers who have to go to a different store to complete their purchase or forego their desired item when faced with a cash-free store.

Key Takeaways:

  • The Bank of England will continue to collect data on cash acceptance, including the impact on consumers when businesses refuse cash.
  • 8% of consumers who encounter a cash-free store have to go to a different store to complete their purchase.
  • 6% of consumers do not purchase the item they want when faced with a cash-free store.
  • The Treasury Committee report highlighted vulnerable groups, including those with learning disabilities, domestic abuse victims, and the elderly, who may be particularly affected by declining cash acceptance.
  • MPs called for improved monitoring of cash acceptance levels to prevent a decline in this service.
  • The committee's report warned that a lack of action to tackle declining cash acceptance could lead to a two-tier society.
  • Public transport and infrastructure for motorists are areas where cash acceptance has become less common.
  • The government has stated that it will continue to monitor cash acceptance levels on an ongoing basis.

Statistics:

  • 8% of consumers have to go to a different store to complete their purchase when faced with a cash-free store.
  • 6% of consumers do not purchase the item they want when faced with a cash-free store.
  • 6% (6 out of 100) is the percentage of consumers who value cash payments.

Sources:

  • The response from the Government was not explicitly dated in the provided text.
  • The report from the Treasury Committee was published earlier this year, but the exact date is not mentioned in the text.
  • The article does not provide information about external sources used by the Treasury Committee in their research.