Recommendations & Conclusions
14 items
111
Conclusion
6th Report - Acceptance of cash
Accepted
The Government and the business community must prove that the current strategy of focusing on cash access alone works, and that it works for everyone. (Conclusion)
Government response. The government highlights that the FCA's access to cash rules came into force in September 2024 and the FCA is committed to monitoring their impact, including undertaking and publishing a formal review of effectiveness with timings to be confirmed this …
HM Treasury
112
Conclusion
6th Report - Acceptance of cash
Deferred
HM Treasury, the Financial Conduct Authority and the Bank of England must provide an interim assessment of the effectiveness of the access to cash regime as soon as is practical. This must include an assessment of whether the regime has affected the willingness of businesses to accept cash. (Recommendation)
Government response. The government's response discusses the ongoing work and consolidation of the Payment Systems Regulator (PSR) into other regulators, including a commitment to consult on the transfer of responsibilities and legislate as soon as possible, rather than addressing the call for …
HM Treasury
113
Conclusion
6th Report - Acceptance of cash
Accepted
We welcome the commitment by small businesses, including convenience stores, to accepting physical cash from those who need to pay for it. We note that for some types of businesses, including market traders, cash remains fundamental to the preservation of markets. (Conclusion)
Government response. The government agrees on the importance of businesses having clear information on payment methods and highlights existing data from the British Retail Consortium, alongside ongoing work by the Payment Systems Regulator (PSR) to improve transparency of card scheme and processing …
HM Treasury
114
Conclusion
6th Report - Acceptance of cash
Deferred
We are disappointed that there is not more clarity on the costs of different payment types, and that businesses are continuing to bear the costs of a lack of competition in the payments processing market. (Conclusion)
Government response. The government's response focuses on the operational resilience of the UK's financial system, detailing how it works with regulators and industry to improve resilience against threats and ensure financial institutions are secure, rather than addressing the committee's disappointment regarding payment …
HM Treasury
115
Conclusion
6th Report - Acceptance of cash
Deferred
HM Treasury, the Bank of England and the Financial Conduct Authority must ensure that the work of the Payment Systems Regulator on competition in payments markets is taken forwards during and after the consolidation of the Payment Systems Regulator into other regulators. (Recommendation)
Government response. The government's response focuses on the issue of digital and financial exclusion, outlining ongoing work with various bodies and continuous data monitoring, but does not specifically address how the Payment Systems Regulator's work on competition will be carried forward during …
HM Treasury
116
Recommendation
6th Report - Acceptance of cash
Deferred
HM Treasury must commit to ensuring that costs of accepting payments by payment method are transparent so that businesses of all sizes can make informed choices on payment methods. HM Treasury should commission work to produce a model of costs produced independently of payment providers. (Recommendation) 47
Government response. The government's response discusses the importance of financial inclusion and legal obligations under the Equality Act, explaining that businesses decide payment methods and the Act does not mandate cash acceptance, thereby deflecting from the recommendation to ensure transparency of payment …
HM Treasury
117
Conclusion
6th Report - Acceptance of cash
Accepted
Digital payments systems are vulnerable to failure for reasons ranging from accidents or hostile actions by state actors, through to failure by a supplier in a retail bank’s digital supply chain. Physical cash has a vital role to play as a payment method that is independent, that is backed by …
Government response. The government commits to continually monitoring and evaluating payments data, including new specific data from the Bank of England's expanded surveys which now includes a question on the impact of businesses refusing cash. However, it does not see a need …
HM Treasury
118
Conclusion
6th Report - Acceptance of cash
Deferred
In discharging its responsibility for national security and resilience, HM Treasury must consider the value of physical cash in emergency preparedness. This may include recommending that cash is held by individuals in case of emergency, and considering what role cash distribution might play in a severe payment systems outage. (Recommendation)
Government response. The government's response focuses on monitoring international approaches to cash access, usage, and policies to inform future decisions, rather than directly addressing how HM Treasury will consider the value of physical cash in emergency preparedness, individual cash holdings, or cash …
HM Treasury
119
Conclusion
6th Report - Acceptance of cash
Accepted
Cash is an enduring payment method that many people prefer to use and on which people who do not have equal access to non-cash payment methods rely. Although technology may progress further and reduce the number of people who rely on cash, demand for physical cash will always exist. The …
Government response. The government recognises the importance of cash for vulnerable groups and commits to publishing a Financial Inclusion Strategy later this year, which will include a committee to examine barriers to accessing appropriate financial products and services.
HM Treasury
120
Recommendation
6th Report - Acceptance of cash
Rejected
HM Treasury must broaden the terms of reference of the Financial Inclusion Committee on “digital inclusion and access to banking services” explicitly to address the risk that a two-tier economy will lock the digitally excluded out of the economy. HM Treasury must commit to reviewing internally and externally produced evidence …
Government response. The government states that the existing remit of the access to banking sub-committee already focuses on digital inclusion and that it already continuously reviews relevant data, therefore it does not believe there is a need to broaden terms or implement …
HM Treasury
121
Conclusion
6th Report - Acceptance of cash
Accepted
The Department for Business and Trade, the Ministry of Housing, Communities and Local Government and HM Treasury must work together to challenge businesses and local government to set out how they are supporting financial inclusion, particularly for people who rely on cash due to their disabilities, in line with the …
Government response. The government agreed on the importance of financial inclusion but stated that businesses decide payment methods and the Equality Act 2010 does not mandate cash acceptance. It highlighted existing legal obligations for businesses and public authorities to consider reasonable adjustments …
HM Treasury
122
Conclusion
6th Report - Acceptance of cash
Rejected
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, and the level of cash acceptance begins to lead to widespread detriment. To ensure that HM Treasury has …
Government response. The government agreed to continually monitor cash acceptance levels through existing data sources but rejected the call for annual reporting to the Treasury Committee, believing current ongoing data collection provides sufficient information.
HM Treasury
123
Conclusion
6th Report - Acceptance of cash
Acknowledged
We note that this debate is being conducted in other countries, and more interventionist approaches are being considered than is currently acceptable to the UK’s Government. We note with interest the range of approaches to cash in these similar countries, including the approach taken by the European Union and Australia …
Government response. The government agrees on the importance of monitoring international approaches to cash access and states it already continually monitors global payment trends and will continue to assess developments in other countries to inform future policy.
HM Treasury
124
Conclusion
6th Report - Acceptance of cash
Acknowledged
In its interim assessment of the current cash access regulation (see Conclusions and recommendations for the UK), HM Treasury must include an assessment of how the problem of declining cash access is being tackled internationally. This must include an assessment of elements of, or all of, these approaches would work …
Government response. The government agreed on the importance of monitoring international approaches to cash access and stated it will continue to keep relevant international data under review to inform future policy. However, it did not explicitly commit to including this assessment in …
HM Treasury