Source · Select Committees · Treasury Committee
6th Report - Acceptance of cash
Treasury Committee
HC 324
Published 30 April 2025
Recommendations
116
Deferred
Commit to transparent payment acceptance costs and commission independent cost model
Recommendation
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 …
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Government Response Summary
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 costs and commission an independent cost model.
HM Treasury
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Conclusions (4)
112
Conclusion
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 Summary
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 an interim assessment of the cash access regime.
114
Conclusion
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 Summary
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 costs and competition.
115
Conclusion
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 Summary
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 its consolidation.
118
Conclusion
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 Summary
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 distribution during system outages.