UK Government gives major update on the future of cash payments in shops
Businesses will no longer be required to accept cash payments and can operate on a card-only basis, the UK Government has announced.
Economic Secretary Emma Reynolds confirmed the major update while addressing MPs on the Treasury Committee earlier this week.
In November, the committee launched an inquiry into cash acceptance across the UK, amid concerns that some businesses—such as coffee shops, trains, and leisure centers—are excluding people who rely on physical money. This includes older individuals unfamiliar with digital payments and victims of domestic and economic abuse, for whom cash can be a financial lifeline.
READ MORE: Asda makes change to rewards scheme as shoppers fume they 'won't shop there'
Reynolds emphasided the government’s focus on ensuring access to cash and tackling digital exclusion. However, she stated that the UK is unlikely to become a fully cashless society anytime soon.
While cash remains legal tender, businesses are not obligated to accept it, just as they can refuse card payments—though the latter is far less common. Meanwhile, digital transactions, including mobile payments, continue to rise, reports the Mirror.
Unlike Australia, which is considering mandating cash acceptance for essential services, the UK government has ruled out similar regulations. Reynolds told MPs, “We have no plans to regulate businesses—big or small—to compel them to accept cash.”
According to the British Retail Consortium (BRC), cash was used in 20% of shop transactions last year, marking the second consecutive year of increased cash usage following a decade-long decline. Many consumers find cash helpful for budgeting.
Reynolds’ testimony concluded the committee’s inquiry, which included statements from disadvantaged individuals who still rely on cash. The committee is expected to release recommendations soon.
Following the session, 84-year-old Constantine Louis told the BBC that he wanted the freedom to choose how he pays. “For older people, using cash gives a sense of control,” he said. “Young people will get older too and may face the same issues—forgetting PIN numbers, for example. Paying by phone works for some, but I don’t know how to do it.”
Campaigners have criticised the government’s stance, with Martin Quinn, director of the Campaign for Cash, calling it “a slap in the face” for cash users. “Millions of people are being ignored,” he said. “This government is effectively treating them as second-class citizens. Meanwhile, US credit card companies and payment giants are profiting at the expense of individuals and businesses burdened by rising card fees.”
Don't miss the latest news from around Scotland and beyond. Sign up to our daily newsletter .
