Shops and services could be forced to accept cash in future

A Treasury Committee report into cash acceptance has stopped short of recommending a change in the law, but says the government has to improve its monitoring of the issue.
"There may come a time in the future where it becomes necessary for HM Treasury to mandate cash acceptance if appropriate safeguards have not been implemented for those who need physical cash," the report says.

From the poverty premium to parking to vulnerable people — the widespread impact of inability to use cash

Shops and services can currently accept whichever form of payment they want.
And in giving evidence to the inquiry, a government minister said there were no plans to make cash acceptance mandatory.
However, with an increasing number of businesses going card/contactless-only, the committee said prices would rise for essential goods and services in the remaining outlets that accepted cash.
This will create a poverty premium for those who want to use cash to budget, as well as for vulnerable groups such as people with learning difficulties and the elderly.

Dame Meg Hillier chairs the influential Treasury Committee and says, "A sizeable minority depend on being able to use cash.” 
She said the report should be a "wake-up call" about the risks of ignoring those within society who need to use cash.

The committee called on the government to "vastly improve" monitoring and reporting of cash acceptance levels.
It also warned of the risk of people being excluded from facilities such as leisure centres, theatres or public transport. The committee also heard evidence about frustrated motorists unable to pay by cash in car parks.
"The government is in the dark on how widely cash is being accepted and that is completely unsustainable," said Dame Meg.
There was also particular concern for victims of domestic and economic abuse who need cash to avoid being traced through card transactions, or to gain financial independence from abusive partners.

This latest report is one of the most significant developments in the debate over the future of notes and coins since the Access to Cash Review, published in 2019, which called for urgent action on the viability of cash.

Among the latest findings is the conclusion that for some businesses, such as market stallholders, cash remains fundamental to the preservation of their trade.

Post Office renews deal with banks

The report comes as the Post Office announced a renewed deal with banks to ensure customers can access basic banking services at Post Office counters.
The deal, which runs until the end of 2030, allows customers of 30 banks and building societies to use their local Post Office to withdraw and deposit cash, make balance queries and deposit cheques.

For many campaigners, though, the findings of the committee don’t go far enough and they have called for cash acceptance to be enforced by the law.
Ron Delnevo, from the Payments Choice Alliance, said he was disappointed about the "procrastinating approach" of the committee.

A spokesman for the Treasury has commented,
”We welcome businesses who do want to continue accepting cash and new rules introduced by the Financial Conduct Authority support this by helping them to make deposits,"
The Treasury also said the government was committed to seeing 350 banking hubs in place to support access to cash.

But for campaigners this may seem insubstantial.

Source : https://www.bbc.com/news/articles/cjwvgqz3vxzo