Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the impact of the COVID-19 pandemic on the (1) use, and (2) circulation, of cash in the UK.

This question was answered on 21st December 2020

The Government remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor and assess risks around cash relating to COVID-19.

It is too early to predict what permanent impacts the COVID-19 pandemic will have on cash usage and payments more broadly. However, it is reasonable to expect that knock on changes in how people purchase goods and services, and social distancing measures, have accelerated the decline in the use of cash, as people have become more comfortable with other forms of transactions and payments, for example contactless card payments.

During the COVID-19 pandemic, there has been an increase in the value of notes in circulation; the Bank of England considers this may be because of banknotes being held for contingent purposes. The return of coin to banks by businesses and the public has varied from its usual pattern. As a result there has been a greater demand for new coin from the Mint than forecast prior to the pandemic.