UK Government to Monitor Cash Acceptance Amid Concerns Over Coins and Banknotes

Strategic Insights -

The UK Government has stated that it will continue to monitor cash acceptance on an ongoing basis in response to a Treasury Committee report that raised concerns over the future of coins and banknotes. The Government has acknowledged the worries of the committee, which 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. The Bank of England has committed to including an additional question on cash acceptance in its survey of consumers, allowing the Government to monitor cash acceptance levels and its impact on an ongoing basis.

Key Takeaways:

  • The Treasury Committee's report highlighted the risks of a two-tier society, where the most vulnerable individuals may bear the cost of declining cash acceptance, citing people with learning disabilities, domestic abuse victims, and the elderly as particularly affected groups.
  • 8% of consumers who encountered a cash-free store had to go to a different store to complete their purchase, and 6% did not purchase the item they wanted at all, according to data collected by the Bank of England.
  • The Government has committed to continuing to include an additional question on cash acceptance in the Bank of England's survey of consumers, allowing for ongoing monitoring of cash acceptance levels and its impact.
  • The Treasury Committee has called for improved monitoring and has argued that the Treasury may need to mandate cash acceptance in the future if those who rely on physical cash are not adequately supported.
  • Charities and consumers have told the committee that local government and local government-funded services are increasingly becoming cashless.
  • The Bank of England expanded its data collection on consumers' payment preferences, including the consumer experience of cash acceptance, in January.

Statistics:

  • 8% of consumers who encountered a cash-free store had to go to a different store to complete their purchase.
  • 6% of consumers who encountered a cash-free store did not purchase the item they wanted at all.
  • Data collected by the Bank of England shows that cash acceptance has become less common in public transport and infrastructure for motorists.

Sources:

  • "Treasury Committee - First Report: Cash and Digital Payments" [1]
  • The Guardian - "Cashless society: UK ministers accused of 'inaction' over refusal to regulate" [2]
  • The Telegraph - "Cashless Britain: how the vulnerable are being left behind" [3]
  • BBC News - "Bank of England to monitor cash acceptance as alternatives rise" [4]