UK Retailers Face Backlash Over Refusal to Accept Cash Amid Cost of Living Crisis

Major high street chains and restaurants, including Gail’s Bakery, Itsu, and Zizzi, are under scrutiny as campaigners push back against the increasing trend of businesses refusing to accept cash payments. This shift comes at a time when more consumers are turning to notes and coins for their everyday spending, driven by the rising cost of living.

Cash use in the UK has significantly declined over the past decade. In 2023, cash accounted for just 12% of payments, yet it remains the second most frequently used payment method after debit cards. According to UK Finance, the number of people relying solely on cash increased from 900,000 in 2022 to 1.5 million in 2023 – a clear indication of its continued relevance, particularly for budgeting purposes. Advocacy groups are now urging the government to intervene and legislate to protect cash as a payment option.

The Payment Choice Alliance is leading the charge, advocating for laws requiring businesses to accept cash payments. Ron Delnevo, the chair of the alliance, highlighted the findings of a 2023 survey that showed 71% of British adults supported a legal mandate ensuring cash acceptance. He criticised businesses opting for cashless operations, calling their refusal to accept cash “completely unacceptable” and divisive, especially as many consumers struggle with the digital transition or prefer cash for financial management.

Retailers explain their decisions, citing benefits such as improved efficiency and reduced environmental impact. For example, Gail’s Bakery claims cashless operations eliminate the need for cash collection and deliveries, while Zizzi argues that card-only transactions improve speed and customer convenience. Despite these arguments, consumer groups argue that digital exclusion and the ease of budgeting with cash have been overlooked.

The financial industry’s preference for a cashless economy has long been documented, with figures such as Ajay Banga, the current World Bank president, once referring to cash as the “enemy” during his tenure as Mastercard CEO. But recent events have rekindled awareness of cash’s importance. Sweden, a pioneer in nearly eliminating cash, has reversed course, advising citizens to keep sufficient cash reserves at home due to cybersecurity concerns. This serves as a cautionary tale for those advocating for a fully digital payment infrastructure.

Government ministers, however, maintain that legislation mandating cash acceptance is unnecessary, leaving payment methods up to individual businesses. While the Financial Conduct Authority (FCA) introduced rules ensuring reasonable access to cash services, these measures may not protect consumers from cashless policies in retail and hospitality sectors. Advocates argue that cash is not just a necessity for budgeting; it offers resilience in cases of financial system collapses or technology failures.

Labour MP Kate Osborne voiced her concerns, highlighting the challenges faced by digitally excluded individuals in constituencies like hers. Criticising the neglect of cash accessibility, she emphasised that cash serves as a “fundamental right” for millions of people in the UK, particularly those on low incomes who rely on cash for day-to-day budgeting and financial control.