Labour government issues big update on rules over paying with cash in stores

Campaigners are calling on the Labour Party government to protect cash access for millions, as bank branches continue to shut.
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The Labour Party government has issued a big update over paying with cash at UK stores and supermarkets. Campaigners are calling on the Labour Party government to protect cash access for millions, as bank branches continue to shut.

But the Labour Party government will not force businesses to accept cash payments despite growing concerns over the exclusion of vulnerable people, a Treasury minister has confirmed. Earlier this week, Economic Secretary Emma Reynolds made the announcement during an appearance before MPs on the Treasury Committee in a blow to millions of cash users.

"We have no plans to regulate businesses - big or small - to compel them to accept cash," Ms Reynolds told the committee. She said the UK was "not anywhere near" being a cashless society, with convenience stores planning to accept notes and coins for years. But she said tackling digital exclusion was still key for those who might struggle.

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Members of the committee pointed to evidence they had received from victims of domestic and economic abuse who said they only had an escape route with cash. Even after getting away, some found they were unable to pay for their children's school dinners with cash.

Speaking to the BBC after giving evidence, Constantine Louis said he wanted choice over ways to pay. "For older people, when they use cash, they feel as though they are in control," said the 84-year-old, who lives in a one-bedroom flat.

"Young people will get older one day and may have the same problems we have - they may start forgetting their Pin numbers. For those who get on the bus and pay with their mobile - that's fine with me. But I can't do it. I don't know how to do it."

Caroline Cawley, from Edinburgh, has a disability and said every penny counted in her life. "Cash is important for budgeting reasons, mainly," the 41-year-old said after giving evidence. "It is much easier to keep tabs of what you've got if you have it physically in your purse."