Earlier this year, I attended Darlington market in County Durham as part of the Treasury Committee’s investigation into cash acceptance. Besides leaving with a beautiful plant and some English apples, I got the opportunity to converse with both vendors and shoppers.
I noticed two key points. First, stall owners at markets tend to be more formidable bargainers compared to most others. Second, numerous individuals heavily rely on using cash to purchase basic necessities.
The report released today by my committee cautions that unless the government takes action promptly regarding the acceptance of cash, those who will suffer the most will be the least fortunate and the most vulnerable members of society.
Online banking and digital payment services have turned into standard practices for numerous people, leading to easier ways of settling payments.
petrol
Or making a weekly grocery order simpler. Nevertheless, this has led to significant unforeseen repercussions for certain demographics. Older individuals, some of whom shared with us their preference to steer clear of digital payment systems because they perceive themselves at higher risk of fraud.
Research shows that almost half of disabled people face barriers when trying to navigate online systems.
Alarming signs indicate that individuals from lower-income backgrounds, who depend on cash for managing their finances, are facing increased financial struggles.
As public transport, parking meters and leisure centres refuse cash, people have less choice of shops where they can spend their money and are forced to travel to buy goods and services. They face a poverty premium.
For countless women experiencing economic coercion or abuse, cash serves as much more than just a means of transaction. Often, victims see their capability to obtain or handle finances being dictated by their abusers. Therefore, gathering and concealing cash can provide them with a potential route to security. We came across the distressing story of a survivor who couldn’t afford her child’s school lunches because the institution operates without accepting cash payments.
Despite informing the school about her abuser—who held exclusive access to the online payment account—and was deliberately withholding payments, they did not acknowledge this as a safeguarding concern. The institution stated that making cash payments was unfeasible, which is utterly unacceptable.
Certainly, some people argue that the expense associated with maintaining physical currency is too great; thus, they support a shift towards a cashless, digitally oriented society.
Other nations like Sweden have found themselves moving towards becoming cashless societies. However, they reversed their stance once it was evident that eliminating cash could potentially leave disadvantaged segments of the population behind.
The UK hasn’t reached that point yet, though it’s unclear just how close it might be. One thing is certain: no one really understands the overall extent of cash usage within British society. Without adequately tracking this information, we can’t guarantee that paying with cash will remain available as an option for those who require it.
This is why we’re urging the government to examine cash acceptance practices, so we can grasp the extent of the problem throughout the economy and pinpoint instances where intervention may become necessary.
It's much wiser to prevent issues early on rather than dealing with them later, as allowing cash flow to deteriorate before taking action might result in significantly higher costs over time.
The committee I lead, The Treasury Committee, has only just started addressing this matter and plans to apply pressure on the government.
The traders and customers I encountered at Darlington market, along with everyone who provided testimony during our investigation, underscored the importance of recognizing as Members of Parliament that cash remains a vital part of daily life for many individuals.
Failure to act may lead to a divided society where those who use cash end up paying higher costs for inferior services—potentially isolating them entirely from communal areas. We must prevent this scenario at all costs.
Read more
Comments
Post a Comment