A new report from a House of Commons committee warns that the UK risks leaving behind people who rely on physical cash unless the government does more to safeguard its acceptance.
While steps have been taken to protect access to cash through ATMs and banking hubs, the committee says that not enough is being done to ensure cash is still accepted in shops, services, and public transport.
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The government now has two months to respond to the committee’s recommendations.
Cash still vital for many, despite decline in use
Cash use in the UK has fallen sharply over the last decade. According to UK Finance, cash made up over half of all payments in 2013, but only 12% in 2023.
Contactless and mobile payments have become increasingly popular, with many businesses choosing to stop accepting cash entirely.
Despite this trend, a significant number of people – including older adults, people on low incomes, those escaping economic abuse, and people with disabilities – still depend on physical money to manage their lives.
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By GlobalDataFor some, digital payments are difficult or impossible to use due to lack of access, poor credit history, or limited digital skills.
The committee said that this growing divide could lead to a “two-tier economy” where some people are locked out of everyday services. They warned that the UK could “sleepwalk into a loss of cash acceptance” without stronger action.
Concerns over transport, parking, and council services
The report highlights several areas where people are struggling to use cash. Many train services, car parks, and council-run leisure centres no longer accept physical money.
Witnesses told MPs that this is causing real problems for people who cannot pay digitally. Some train stations are unstaffed, and some parking apps do not work reliably, leaving users unable to complete their journeys.
Local authorities are also moving more services to card-only payments.
Charities raised concerns that this makes life more difficult for those who already face barriers, including people with learning disabilities and survivors of domestic abuse who may not have access to bank accounts.
Recommendations for government action
The committee made a number of recommendations. It called on HM Treasury to monitor cash acceptance levels across the country and to report annually to Parliament.
If cash use continues to decline and starts to harm vulnerable people, the government should consider making it compulsory for certain businesses or services to accept cash.
MPs also said the Financial Inclusion Committee should take a broader view, looking not only at digital banking access but also at how cash acceptance affects different groups.
The report urged the government to ensure payment systems remain fair and competitive, and to make the costs of different payment methods more transparent to businesses.
Finally, the committee emphasised that cash is not just a payment method—it plays a key role in national resilience. In the event of a major digital outage or emergency, physical cash can serve as a backup when digital systems fail.
Next steps
The government is expected to respond to the committee’s findings by the end of June.
The report underlines that while digital payments are convenient for many, physical cash remains essential for millions—and its role in society should not be taken for granted.
