UK government coffers swell by £12bn as cash use declines, but risks leaving vulnerable groups behind

The UK government is making more tax revenue as cash use declines and digital payments rise, making it harder for people to avoid paying VAT. Over £12 billion extra was collected.

Shops are legally allowed to refuse cash payments. This became more common during the pandemic and some shops still don't take cash.

Not everyone can or wants to use cards. Poorer people and those trying to limit spending often rely on cash. The UK's personal debt continues rising.

Watchdogs like the FSB warn that declining cash access threatens vulnerable groups and small businesses. Measures to ensure cash access are welcomed but could go further.

Groups like Age UK say cash is essential for many older people to easily pay for goods, manage budgets, and retain control and independence over their finances.