UK Shops Could Be Forced to Accept Cash as MPs Raise Concerns Over Financial Exclusion
LONDON, May 1, 2025 – British shops and service providers may be legally required to accept cash in the future to protect vulnerable groups who depend on it, according to a new Treasury Committee report.
While the report stops short of recommending immediate legal enforcement, it warns the government must ramp up monitoring of cash acceptance — and leaves open the possibility of mandating it if voluntary safeguards fail.
“There may come a time when mandating cash acceptance becomes necessary,” the committee stated, pointing to similar policies under consideration in Australia and parts of the European Union.
Growing Cashless Shift Raises ‘Poverty Premium’ Fears
With a rising number of shops moving to card-only payments, the report warns this could lead to higher prices at the dwindling number of outlets still accepting cash. The result? A “poverty premium” for people who rely on cash to budget, especially the elderly, disabled, or those with learning difficulties.
Committee chair Dame Meg Hillier called this a “wake-up call,” warning that many people risk being excluded from essentials like public transport, leisure centres, or parking, where card-only policies are becoming common.
“We’re in the dark about how widespread cash acceptance really is,” she said. “That’s completely unsustainable.”
The issue also has implications for victims of domestic and economic abuse, who may rely on untraceable cash transactions to regain financial independence.
Businesses React to Changing Habits
Despite the shift toward digital payments, some businesses say cash remains vital. Chris Ilsley, who runs CI Plants at Epsom Market, said his stall is now 70–80% card-based but continues to accept cash. “We’ll take anything — whatever is easiest for the customer,” he said.
At nearby fruit stall The Fruit Machine, Tom Cresswell noted that younger customers pay with phones and watches, while older generations tend to prefer cash.
“I prefer when older customers use cards for safety, but ultimately we accept both,” he added.
Access Still Protected — But Acceptance Is Not
While the government has supported cash access, including a renewed deal with UK banks and the Post Office to allow basic banking at post office counters until 2030, acceptance of cash as payment remains voluntary for businesses.
Groups like the Payments Choice Alliance are calling for a cash acceptance law, criticizing what they see as government delays.
Consumer advocacy groups say many still prefer cash for budgeting and independence, and that its role in society shouldn’t be prematurely dismissed.
Government Response
A Treasury spokesperson reiterated support for cash access, citing plans to establish 350 banking hubs across the UK, and noted that new rules from the Financial Conduct Authority (FCA) are helping businesses handle cash deposits more easily.
Still, the Treasury Committee warned that unless more robust safeguards are introduced soon, the government may have no choice but to legislate — ensuring cash remains a viable and accepted payment method in everyday life.
