Thank you for contacting me about cash availability and acceptance.
Cash remains an important part of daily life for millions of people across the UK, which is why the Government has committed to legislate for the protection of access to cash. The Financial Services and Markets Bill will ensure the continued availability of withdrawal and deposit facilities across the UK.
The Bill follows a detailed consultation on cash access which took place in 2021.
Schemes such as Community Access to Cash have been very successful, as has the facilitation of the wide-spread adoption of cashback without a purchase brought about by the Financial Services Act 2021. There is, however, much more to be done, and this new legislation is vital to ensure the needs of cash users are understood and continue to be met by industry, including large and small retailers.
While cash acceptance is important, it was also vital to make sure that card transactions were as safe as possible during the pandemic. That is why I welcomed the Chancellor’s decision to double the legal limit for single contactless payments from £45 to £100.
I welcomed the establishment of the Joint Authorities Cash Strategy (JACS) Group which brings together representatives of our key financial regulators to provide joined-up and comprehensive oversight of the UK's cash infrastructure. The JACS Group will place a particular emphasis on user needs and the changing nature of cash usage.
I understand from Ministerial colleagues that the Government does not plan to mandate cash acceptance. While the Government recognises the ability to transact in cash remains important to millions of people across the UK, particularly those in vulnerable groups, it remains the choice of individual businesses as to whether to accept or decline any form of payment, including cash or card. This may be based on factors such as customer preference and cost.
Thank you again for taking the time to contact me