Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that businesses accept cash as a method of payment for goods during the covid-19 outbreak.

The FCA has published research on cash acceptance by small and medium-sized enterprises (SMEs), which found that the primary motivation for accepting cash is to provide customers with choice. While it remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card, nearly all (98%) of surveyed businesses stated they would never turn away a customer if they needed to pay by cash.

Nonetheless, the Government recognises that the ability to transact in cash remains important to millions of people across the UK and has committed to legislating to protect access to cash.

Throughout the Covid-19 pandemic, the Government has worked closely with the financial regulators to ensure firms maintain branch access for essential services, while balancing the needs of their customers with the safety and welfare of staff. The vast majority of people have continued to have access to cash during the pandemic.

The Government recently consulted on legislative proposals to make sure people only need to travel a reasonable distance to pay in or take out cash. The Government’s proposals stand to support the continued use of cash in people’s daily lives and to help local businesses to continue accepting cash by ensuring access to deposit facilities.

The Government also made legislative changes to support the widespread offering of cashback without a purchase by shops and other businesses as part of the Financial Services Act 2021. Cashback without a purchase has the potential to play an important role in the UK’s cash infrastructure. The financial services industry is already seeking to take advantage of the changes to the law for the benefit of cash users; working with retailers to roll out new services to local communities.