A Complete Unknown
£9.99The Treasury Committee has raised concerns about the future of cash acceptance, suggesting that shops and services may need to be compelled to accept cash to protect vulnerable individuals who depend on it. While the committee stopped short of recommending a change in legislation, it emphasized the need for the government to enhance its monitoring of the situation. The committee warned that if appropriate measures are not put in place for those reliant on physical cash, HM Treasury may need to mandate cash acceptance in the future. This approach is already being considered in other countries, such as Australia and some areas of the EU, where cash acceptance for essential services may become mandatory.
Dame Meg Hillier, who chairs the influential Treasury Committee, highlighted the potential impact of a shift towards card-only transactions on the cost of essential goods and services for individuals who prefer using cash. The report pointed out that as more establishments go cashless, prices could increase for those limited to cash transactions. This could lead to a poverty premium, affecting vulnerable groups like individuals with learning disabilities and the elderly who rely on cash for budgeting. The committee urged the government to improve its monitoring and reporting of cash acceptance levels to prevent exclusion from various services, such as leisure centers, theaters, and public transport.
The discussion around cash acceptance is gaining momentum, with the Access to Cash Review in 2019 calling for urgent action on the sustainability of cash. Market stallholders, like those in Epsom, Surrey, have highlighted the importance of cash in sustaining their businesses. Chris Ilsley, a plant stall owner, noted the shift from 100% cash transactions to 70-80% card payments over his 13 years in the market. Similarly, Tom Cresswell, who operates a greengrocer stall, observed a higher preference for card payments among younger customers, contrasting with older patrons who tend to opt for cash transactions. The Post Office’s renewed agreement with banks to provide basic banking services at its counters until 2030 underscores the ongoing relevance of cash in today’s financial landscape.
Despite the growing trend towards digital payments, cash remains a crucial form of currency for many individuals. Campaigners have called for legal enforcement of cash acceptance to safeguard the needs of vulnerable populations and ensure financial inclusion. The government’s commitment to establishing banking hubs and supporting businesses that continue to accept cash demonstrates a recognition of the diverse payment preferences within society. As the debate on cash acceptance continues, it is essential to strike a balance between embracing technological advancements and upholding the accessibility and inclusivity that cash transactions provide for various segments of the population
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