Government: We will protect notes and coins

JOHN Glen, Economic Secretary to the Treasury, says: ‘In recent years, we’ve seen rapid changes in the way we pay for goods. People are increasingly choosing cards or innovative payment methods like e-wallets – made possible by advances in technology and regulation.

‘Cash use is declining, but millions still rely on it. There are many reasons: for some, cash is a key budgeting tool; for others, it is more accessible than digital payments – or a sign of independence. It is vital that these people – many being elderly or vulnerable – are not left behind by a shift to new payment methods.

‘The Government is working hard to protect access to cash for the people and businesses that need it. We promised to legislate in this year’s Budget and we will deliver. Work is going on now to develop new rules that will shape the future of cash. We want to harness the same creative thinking that has driven innovation in digital payments to maintain the UK’s cash system.

‘That’s why we are looking at how we can make cashback without a purchase widely available, so people could get cash from retailers in their local community without having to buy anything. And we’re seeking views on giving one regulator overall responsibility for the parts of the cash system used by consumers and small businesses, a role the Financial Conduct Authority could take on.

‘Protecting access to cash presents complex economic challenges – but it remains a key Government priority. With new legislation in the pipeline, and innovative community cash pilots underway across the UK, we will make sure that people who need to use cash are not left behind.’