Report Warns of Risks to Vulnerable Groups, Urges Government Action to Protect Cash Access

Concerns are rising that Britain could inadvertently create a cashless society, potentially harming vulnerable populations. Campaigners are warning that the elderly, those experiencing domestic abuse, and individuals with learning disabilities could be disproportionately affected if businesses cease accepting cash. A new report highlights the need for government intervention to ensure the continued availability and acceptance of physical currency.

The report, issued by Westminster’s Treasury committee, emphasizes the government's lack of understanding regarding the current prevalence of cash acceptance. It warns that a decline in cash usage could lead to a "two-tier system," excluding vulnerable groups from essential services like leisure centers, public transport, and other amenities. The potential for increased prices at businesses that continue to accept cash, creating a "poverty premium" for those already struggling financially, is also a significant concern.

The absence of a legal requirement for businesses to accept cash is a key issue. Shadow Chancellor Mel Stride has emphasized the importance of protecting cash for millions of people, while Age UK highlights the critical need for older individuals to have easy access to cash, particularly in rural areas where banking services are limited.

Furthermore, the potential risks associated with a cashless society, such as vulnerability to cyberattacks or technological failures, are being considered. The decline in cash usage is evident, with a significant drop in its share of payments over the past decade. Some argue that cash represents freedom and security, especially for essential goods and services.

Various organizations, including Later Life Ambitions and Mencap, are advocating for the preservation of cash payments. They emphasize the reliance of older people and individuals with learning disabilities on cash for everyday transactions. Additionally, Surviving Economic Abuse highlights the importance of cash in protecting victims of domestic abuse from financial control.

The challenges faced by businesses in accessing and handling cash are also acknowledged. The closure of high street banks has made it more difficult for shops to obtain change, while the cost of managing cash can be prohibitive for small retailers. The Treasury committee's report urges the government to take action to manage the decline in cash acceptance and protect its continued availability.