Shops won’t be forced to accept cash

Shops and service providers won’t be required to accept cash, a government minister has said.

Emma Reynolds, the economic secretary to the Treasury, was questioned by the Treasury Committee about the increasing number of businesses, such as coffee shops and leisure centres, that are refusing to accept cash payments.

Ms Reynolds insisted that the UK is not about to become a cashless society.

However, she ruled out following the lead of other countries, such as Australia, and forcing essential services to keep taking cash payments.

“We have no plans to regulate businesses - big or small - to compel them to accept cash,” Ms Reynolds commented.

She added that the government is “focused on ensuring that everyone has access to cash, such as through new banking hubs, and improving people’s digital skills”.

Cash vital for vulnerable people

The Treasury Committee has already heard evidence from various charities, who warn that scrapping cash could put some vulnerable people at risk.

Deidre Cartwright of the charity Surviving Economic Abuse, for example, told MPs that physical notes and coins can be a lifeline for women in abusive relationships.

"Oftentimes, access to cash is their only means to actually accessing essentials for themselves and their children,” she said.

"It's a means for them to be able to escape an abuser, especially when that abuser can track them through a bank account, so it's incredibly important for their safety and survival."

Ron Delnevo of the Payment Choice Alliance added that disabled people are being excluded when services such as car parks refuse cash.

He said his organisation has heard “heart-rending stories” from relatives of those with disabilities and that not taking cash is “robbing them of their self-esteem”.

"This was their money and they had the right to spend it and they are being told their money is no good anymore,” Mr Delnevo commented.

“They take that as implying that they're no good anymore."

Cash helps people manage budgets

Another advantage of cash is that it helps people stay in control of their finances when money is tight.

It’s so easy to swipe a card without a second thought, but when you use cash, you can be more aware of your spending.

Simply seeing notes and coins leave your wallet can make a big difference in helping to curb impulse purchases.

As Graham Mott of LINK said just this week: “For those on low budgets, there’s still no better alternative to managing your finances than using notes and coins.”

If you want to get to grips with how much you’re spending and see where savings can be made, then take a look at our free budget planner.

We’ve also put together a handy guide on creating a budget to help you get started.