The Treasury Committee has urged the government to consider mandatory cash acceptance, after research showed cash use has risen for the third year in a row.

In its latest report, the committee recommends that MPs consider legislating for all shops and services to accept cash. It also urges the government to improve oversight of the UK’s ‘access to cash’ infrastructure, amid concerns that card-only businesses are excluding significant sections of the population, including the elderly, vulnerable, and those without access to digital banking.

Unlike the UK, many countries across the EU already require businesses and public services to accept cash. Nations such as Sweden and the Netherlands, which previously moved towards a cashless model, are now reversing course due to cyber threats and a growing focus on inclusive, resilient payment systems.

Volumatic, a UK manufacturer of intelligent cash-handling equipment, warned that a card-only approach carries risks for retailers, including rising transaction fees post-Brexit, as well as increased vulnerability to cyberattacks, system outages, and technical failures.

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To maintain access to cash, more than 350 banking hubs are being rolled out across the UK, supported by new rules from the Financial Conduct Authority.

James Harris, managing director at Volumatic, said: “While digital payments are undoubtedly convenient, cash remains one of the most resilient payment methods we have, and its importance should not be underestimated. Cash ensures privacy and inclusion, and it costs a fraction of the amount to process, especially for smaller businesses.

“Volumatic are more than happy to support businesses in realising the benefits of accepting cash and can help them make things even easier by recommending the CCi, a full end-to-end cash management solution to make their processes more secure, more efficient and more cost-effective.”

Harris added that, with legislative momentum increasing, now is the time for retailers to take action to not only safeguard their business but to play their part in a more inclusive and resilient payment ecosystem.

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