The Government has assured that the Bank of England will keep a close eye on cash acceptance, following concerns about the fate of coins and banknotes expressed in a Treasury Committee report.
In its reply to the committee’s findings, the Government mentioned that the Bank had pledged to maintain an extra query regarding cash acceptance in its consumer surveys, a question first introduced this January.
The official response stated: “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.
(Image: PA)
“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 pointed out that UK businesses and organisations are legally permitted to reject cash payments without any obligation to meet the diverse needs of customers.
Witnesses observed that public transportation and infrastructure for drivers are seeing a decline in cash acceptance. Additionally, charities and consumers reported to the committee that local government and services funded by local authorities are increasingly moving towards cashless options.
The report, released earlier this year, cautioned that without intervention to address the diminishing acceptance of cash, society could become divided, with the most vulnerable paying the price. Especially at risk are groups such as those with learning disabilities, survivors of domestic abuse and older people.
(Image: Getty Images/Westend61)
MPs have urged for better oversight. 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.
However, the committee’s report argued that the Treasury may eventually need 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.”
Have you got a story to share? Get in touch at lauren.haughey@reachplc.com