A stark warning from a Treasury Committee report highlights potential social exclusion risks associated with the declining use of cash across British businesses. Concerns have been raised about the impact on vulnerable groups, such as the elderly, individuals with learning disabilities, and domestic abuse survivors, if the UK continues to transition to a “cashless” state.
The Treasury Committee report reveals that an increasing number of establishments are refusing cash payments, signaling a potential progression towards a “cashless society,” where transactions and banking occur primarily online or electronically.
Parliamentarians have proposed the imposition of a requirement for businesses to accept cash to prevent neglecting vulnerable populations. Currently, commercial entities are not legally obligated to accept cash and may overlook its impact on prospective patrons.
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Dame Meg Hillier, the committee chair, emphasized the need for government intervention, stating, “We are at risk of a two-tier society where the most vulnerable bear the brunt, and this needs to be a wakeup call.”
The crucial role of cash in emergencies was also highlighted in the report, citing recent bank outages as an example.
Cash usage has significantly declined in favor of online banking and contactless payments. UK Finance reports that in 2013, cash accounted for 51% of all payments, whereas by 2023, its usage had dwindled to just 12%.