On 4 November 2024, the Treasury Committee announced that it is investigating whether there is a need in the UK to regulate or mandate the acceptance of physical cash in the form of notes and coins. A call for evidence has been launched as part of the inquiry.

The inquiry will consider whether legislation and/or regulation is needed to govern the acceptance of physical cash in the UK, and potential costs to consumers and businesses. There are currently no regulations requiring businesses to accept cash.

The Treasury Committee explains that the Bank of England has noted an increase in the infrastructure costs of retaining physical cash as a viable payment method as a result of the decline in cash usage, which it warns could lead to disruption for businesses and consumers. It also flags that others have highlighted the dangers of an overreliance on digital payments, suggesting cash acceptance should be viewed as ‘a form of civil preparedness’.

The call for evidence closes on 2 December 2024.