In December 2024, when the majority of the UK population was preparing for Christmas, many may have missed an interesting development from the UK Government where it reaffirmed that it is “committed to maintaining the viability of cash as a payment method for those who choose to use it” to make transactions.
A petition to make accepting cash payments law
It came in an answer to a petition submitted by Christopher Jones who was calling for the Government to mandate “all businesses and public services to accept cash payments”. He would like the Government to pass a law obliging businesses to give customers the right to pay for goods and services with cash. Mr Jones suggests that this strategy could include financial sanctions, such as penalties for outlets that refuse cash and mandates for the banking sector.
In its response, the UK Government pointed readers in the direction of a piece of research which had been published by the Financial Conduct Authority in 2021 which found that 98% of small businesses approached to take part in the survey would never turn away customers if they needed to use cash to make a payment.
Is this the end for cash payments?
The UK Government observed that whilst there is an ongoing trend towards payments in the UK being made by card and other digital payment methods (like electronic payments), it recognises that non-digital types of payment remain important, and that cash in particular continues to be used by millions of people across the United Kingdom.
The authorities underline the importance of cash as some vulnerable groups may be left in a precarious position if cash payments are no longer accepted.
The Government did not say which people they meant by “vulnerable groups”.
The UK Government appears to want to take a light touch in this area by leaving it to the discretion of individual organisations to decide on the forms of payment they choose to accept, and this includes cash payments.
The Government says cash has a bright future
There might be a perception that cash is dying out and will be replaced immediately and imminently by forms of electronic payment. However, in its response to Mr Jones’ petition the UK Government discussed the potential future direction of payments in the United Kingdom, and it feels that cash remains important.
In its statement, it said it “recognises that for cash to remain a viable means of payment, it is important for individuals to have good access to cash withdrawal facilities. In addition, it is important that those organisations that want to continue to accept cash have ready access to cash deposit services.”
If the reader cannot comprehend the viewpoint on payments in cash, it is important to look at the evidence put forward to support its view. In the face of the increasing use of digital payments, the UK Government appears intent on securing the future of cash payments and wants the public to be able to access cash via access points such as cash machines; it points readers in the direction of a publication produced by the Financial Conduct Authority demonstrating that 97% of those living in urban areas reside within one mile of a free-to-use cashpoint, and in rural areas the research found this to be within three miles.
Are regulations required?
Mr Jones’ would like to see businesses obliged by law to accept cash payments. However, the UK Government seems to think that this is unnecessary and pointed to rules which have been introduced by the Financial Conduct Authority and are designed to “protect access to cash withdrawal and deposit facilities for personal and business customers.”
The UK Government moved on to explain how these rules protect customers by stating that the “rules require the largest banks and building societies, as part of any decision to close a cash access facility or following a request from a local community, to assess the impact on a local community’s ability to withdraw and deposit cash, and to put in place a new service if necessary.”
How much support did Mr Jones’ campaign get so far?
Currently, we cannot be sure how successful the campaign headed by Mr Jones is going to be and whether the UK Government will force businesses in England and Wales to accept cash as a method of payment.
The highest number of signatures per population seems to be in areas that are mainly rural, whereas people in more urban areas appear less interested in signing the petition. In the north west, the highest number of signatures per number of inhabitants comes from the Whitehaven and Workington, and Macclesfield areas, whereas low numbers are seen in areas such as Preston, Manchester, Chorley, and parts of Liverpool for instance.
Signing the petition
The UK Government said it “welcomes the Treasury Select Committee’s inquiry into the acceptance of cash”, commenting that “the Economic Secretary to the Treasury looks forward to giving evidence to the committee in the early part of 2025.”
So, whilst there seems to be a movement away from cash in some businesses and towards other forms of currency, so far as we can read from the response issued by the UK Government, it seems to be in support of cash, feeling that the commodity has a future, and they are doing what they can so people can access it. Any supporters of the campaign for businesses to be obliged to accept cash should think about signing the petition. While there is no guarantee that the UK administration will bring in the desired changes, choosing to sign petitions holds the feet of the Government to the fire by making sure the concerns of the public are listened to.
