Martin Lewis warns there's 'common confusion' over cash payment 'rule'

Martin Lewis has issued a warning over new laws being brought in around cashless payments. The BBC Sounds and ITV star ha sshared a government consultation today, which is exploring whether "rules are needed" to mandate accepting physical cash notes and coins.

Mr Lewis said: "Some asking me "isn't it illegal for places not to accept cash?". No it isn't. This is a common confusion because of a mis-undertanding over what 'legal tender' means. Legal tender simply means what can't be refused as payment in a court ordered debt. It doesn't impact day-to-day life. There are no rules on what payments type firms have to accept as long as they are not discriminating."

He said: "To clarify the discrimination is against protected characteristics. Eg (at its extreme) refusing to take someone who is black's cash, while allowing someone who is white to pay in cash in the same circumstances."

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He went on and said: "I know many are quite passionate about protecting access to paying in cash (me included - its needed by many vulnerable people), so thought some may be interested in this..." It comes after the Treasury Committee explained: "We have launched an inquiry examining whether rules are needed to regulate or mandate accepting physical cash in the UK.

"Find out more about the inquiry, and how to submit evidence." It said in its launching of the consultation today: "Though the use of cash has declined over recent years, it remains a vital resource to many, with around 3.1 million people in the UK relying almost entirely on cash as a form of payment.

"Research indicates that the use of cash can provide a vital lifeline to groups such as those with long term poor health or people at risk of economic abuse." It said: "The Bank of England has noted that the decline in cash usage is increasing the infrastructure costs of retaining physical cash as a viable payment method, which could lead to disruption for businesses and consumers.

"Others have highlighted the dangers of an overreliance on digital payments, suggesting cash acceptance should be viewed as a form of civil preparedness. There are currently no regulations which require businesses to accept cash."