The UK Treasury Committee has raised the possibility of future legislation requiring shops to accept cash, citing growing concerns that a decline in cash acceptance could lead to a two-tier society, excluding vulnerable groups.
Currently, there is no legal obligation for UK businesses to accept cash, meaning retailers are free to go entirely digital. However, the Committee’s latest report warns that this unregulated shift is placing an increasing burden on individuals who rely on cash, including the elderly, people with learning disabilities, and victims of domestic abuse.
Testimonies presented to the Committee highlighted how limited cash acceptance can force these individuals to pay higher prices or travel further just to buy basic goods. In some cases, they are excluded from participating in everyday life at venues like public transport services, leisure centres, and theatres.
Despite these findings, the Economic Secretary to the Treasury stated there are currently no government plans to mandate cash acceptance. Nonetheless, the Committee argues that if voluntary efforts fail, regulation may become essential to protect those dependent on physical currency.
The report calls on the Government to dramatically improve its monitoring and reporting of cash acceptance trends. Without intervention, the UK risks deepening inequality and diminishing national financial resilience—a concern underscored by recent bank outages that triggered a surge in cash withdrawals.
Internationally, the UK is not alone in grappling with the risks of a cashless future. In Norway, new laws passed in October now require retailers to accept cash, halting its progression toward becoming fully cashless. Similarly, in Sweden, the central bank has endorsed proposals to legislate in support of maintaining cash access.
“As a society, we must avoid sleepwalking into a situation where cash is no longer widely accepted,” said Dame Meg Hillier MP, Chair of the Treasury Select Committee. “This is the beginning, not the end, of our scrutiny of this issue. The Government needs to take this seriously.”