Businesses across the UK could face legal obligations to accept cash payments in the future, following warnings from MPs that declining cash acceptance is creating a two-tier society. In a damning new report, the Treasury Committee has called on the Government to improve its oversight and consider mandating cash acceptance to ensure that vulnerable people are not excluded from essential services.
The committee’s findings come amid a dramatic drop in cash usage, with just 12% of transactions carried out in cash by 2023, compared to 51% a decade earlier. While digital payments have surged in popularity, the committee says this shift risks leaving behind the elderly, people with learning difficulties, victims of economic abuse, and those without bank accounts.
The report warns that without stronger action, the UK could “sleepwalk” into a cashless society where those most in need of cash are unable to participate fully in public life. Leisure centres, theatres, and even public transport are becoming increasingly cashless, with car parks and local authority services among the most commonly cited examples.
“There may come a time in the future where it becomes necessary for HM Treasury to mandate cash acceptance,” the report states, “if appropriate safeguards have not been implemented for those who need physical cash, and the level of cash acceptance begins to lead to widespread detriment.”
Chairwoman of the Treasury Committee, Dame Meg Hillier, said: “We are at risk of a two-tier society where the most vulnerable bear the brunt. The Government is in the dark on how widely cash is being accepted and that is completely unsustainable.”
The committee has urged the Treasury to deliver annual updates on cash acceptance and to define what level of cash availability it considers tolerable in society.
Representatives from charities told MPs that individuals fleeing domestic abuse often rely on cash to escape controlling partners. Sam Smethers, CEO of Surviving Economic Abuse, said: “Abusers control survivors’ bank accounts or prevent them from opening one. This forces many to secretly save cash or flee with only the clothes on their backs and change in their pockets.”
The Post Office also emphasised the resilience benefits of cash. Ross Borkett, its banking director, noted sharp increases in withdrawals during IT outages at major banks. The report revealed that between January 2023 and February 2025, there were at least 158 IT failures affecting banking services, reinforcing the case for maintaining cash infrastructure as a safety net.
Despite mounting evidence, the Government remains reluctant to intervene directly. Economic Secretary to the Treasury Emma Reynolds recently told the committee that there are “no plans to regulate businesses to compel them to accept cash,” instead pointing to efforts to address digital exclusion.
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Yet critics argue that digital inclusion schemes fail to address the deeper social and economic reasons some individuals continue to depend on cash. Conor D’Arcy, deputy chief executive at the Money and Mental Health Policy Institute, said: “For many of us with mental health problems, cash is hugely important. It helps people to budget, stay in control of their spending, or get support managing money.”
In response to the report, the Treasury reiterated its commitment to safeguarding access to cash. A spokesperson said: “Cash continues to be used by millions of people across the UK. We are working with banks to roll out 350 hubs by the end of this Parliament.”
John Howells, chief executive of ATM network Link, welcomed the findings, saying: “This timely report is further evidence that cash continues to be absolutely critical – both for millions of people and for national resilience.”
As digital payments dominate, the committee’s message is clear: cash must not be left behind – and neither must those who rely on it.
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