The rules on paying with cash in the UK after PMQs question

Anne Marie Morris, the Tory MP for Newton Abbot, asked the Prime Minister during PMQs: "Will the PM ensure any entity providing a public service accepts cash?"

The PM responded: "We know cash continues to be used by millions of people.

"But as technology and consumer behaviour changes it's right companies themselves can choose the type of payment they accept."

Anne Marie Morris today during PMQs (Image: BBC)

So, what are the rules for shoppers who rely on paying by cash?

Do businesses have to accept cash?

Currently it's down to the business what specific payment methods they accept – and there is no legal obligation to accept cash.

Some confusion can stem from the fact cash is often described as ‘legal tender’, however this doesn’t mean it’s your legal right to use it in a shop.

The Bank of England says legal tender has a ‘narrow technical meaning’, which has no use in everyday life.

It means that if you offer to fully pay off a debt to someone in legal tender, they can’t sue you for failing to repay.

Shops and services should be legally required to accept cash, MPs told

Businesses should not legally be allowed to refuse cash, MPs were told during a debate in March.

People on lower incomes, the elderly and disabled people are among 10 million who would become "financially excluded" in a cashless society.

It comes after nearly 60,000 people signed petitions to Parliament calling for it to be illegal for retailers and services to only accept cards.

SNP MP Martyn Day said: "For some of our constituents not being able to use cash is a profound barrier in everyday life.

"Cash can be a vital means of budgeting."

He cited figures from The Royal Society for the Encouragement of Arts, Manufactures and Commerce (RSA), which last year found 15 million people rely on cash for budgeting.

What has Martin Lewis said?

According to the Money Saving Expert, shops are legally allowed to refuse cash payment for items as long as they are not discriminating against the customer.

The issue was mentioned on the ITV's 'The Martin Lewis Money Show', where the discussion of legal tender was brought up.

Lewis responded to this saying: "No, they are not breaking any rules."

"You are allowed to take card only as long as it's not discriminatory for race or disability or something."

He went on to explain the actual definition of legal tender.

"Legal tender has a strict definition.

"It means if you have a court awarded debt against you if someone tries to settle and they're paying in the legal tender you cannot refuse it.

"And that's all it means."

When the idea of getting rid of cash altogether Martin said: "I know many people are saying 'why don't we just switch to a cashless society?'

"I don't want that, because there are many vulnerable people who need cash," he said.

This comes after many ATMs and bank branches have been closing down.