Government Urged to Act on Cash Payment Access

The recent publication of the Treasury Committee’s Acceptance of Cash report casts a fresh spotlight on the rapidly shifting payment landscape in the UK, and its consequences for rural communities. While the Government has made strides in safeguarding access to cash through regulatory intervention, the equally vital question of cash acceptance—the ability to spend cash—remains largely unaddressed in policy.

The Committee's inquiry made clear that while most people in the UK now prefer digital payment methods, a significant proportion—particularly older people, those on low incomes, and people with disabilities—still rely heavily on physical cash. This reliance is even more pronounced in rural communities, where broadband connectivity and mobile coverage often lag behind national standards.

The BBC recently reported that 645 bank branches closed across the UK in 2023 alone, with hundreds more set to follow in 2024. The article also highlights a key recommendation from the Treasury Committee: that the Government should monitor the cash acceptance landscape, especially in areas where people have no realistic alternative. These warnings are starkly familiar to those in rural areas where cash points and bank branches have disappeared at an alarming rate.

As the RSN highlighted in our earlier article on "The Disappearing Rural Banks", rural residents are being pushed into so-called 'banking deserts'. With fewer options to withdraw or deposit cash, many small businesses are discouraged from accepting it—accelerating a shift that’s not consumer-led, but convenience-driven.

The Treasury Committee found that while the Financial Conduct Authority now oversees cash access, it has no power to enforce acceptance. This policy gap has real-world implications. Across many rural areas, residents face difficulties using cash in everyday scenarios—from parking meters and public transport to local authority services and even leisure centres. In some cases, the lack of card payment options in mobile signal dead zones further complicates matters.

Read the full Committee Report HERE

Kerry Booth, Chief Executive, Rural Services Network: "The Treasury Committee’s report rightly recognises that the conversation on cash cannot stop at access alone—it must include the ability to use cash in everyday transactions. For many in rural areas, particularly older residents and those on lower incomes, cash is not a preference—it is a necessity. The disappearance of rural banks and the steady rise of card-only environments are making life harder for rural communities already contending with patchy digital infrastructure and reduced local services. If we fail to act, we risk pushing these residents further to the margins—economically, socially, and digitally. We strongly support the Committee’s call for Government to take a more proactive role in monitoring cash acceptance and to ensure rural voices are represented in the design and oversight of national policy. A truly inclusive payment system must reflect the needs of all communities—including those too often overlooked. The right to use cash must not only exist in principle—it must be protected in practice".