Source · Select Committees · Treasury Committee
Recommendation 117
117
Accepted
Physical cash maintains vital independent role when digital payment systems fail
Conclusion
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 the UK Government and that can be used as an analogue payment method when digital ones fail. (Conclusion)
Government Response Summary
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 for annual reporting due to ongoing data evaluation.
Government Response
Accepted
HM Government
Accepted
The Government agrees that levels of cash acceptance should continue to be monitored and is committed to continually monitoring and evaluating all relevant payments data, including data on consumer preferences and trends, in order to inform future policy and ensure consumers and businesses have a choice of payment methods to meet their needs. Evidence shows that cash acceptance remains high. Data from the British Retail Consortium’s 2024 Payments Survey11 shows that 100% of survey respondents confirmed they still accept cash in physical stores. The Association of Convenience Stores12 state that, across its members, cash is the most widely accepted method of payment with 99% of all stores accepting it. The Bank of England regularly collects data on consumers’ payment preferences, including the consumer experience of cash acceptance. In January, the Bank of England expanded this data collection 10 Services, public functions and associations: Code of Practice | EHRC 11 2024-payments-survey.pdf 12 ACS Local Shop Report 2024 (low res).pdf with a new question seeking to understand the impact of a business refusing cash on individuals. Where consumers did encounter a cash free store, 8% had to go to a different store to complete their purchase and 6% did not purchase the item they wanted at all. The Bank of England has committed to continuing to include this additional question on cash acceptance in its surveys of consumers, allowing the government another avenue to monitor cash acceptance levels and the impact of cash acceptance on an ongoing basis, alongside data from industry. The Government believes that available evidence provides a detailed picture of cash acceptance that is wide ranging and regularly updated. Therefore, it does not consider there is a need for annual reporting but remains committed to evaluating relevant data on an ongoing basis.