New report raises concerns over lack of Government strategy for declining use of cash in Jersey
Scrutiny
4 February 2025
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A Scrutiny Panel is concerned that some of the most vulnerable members of Jersey’s community could find themselves unable to access some goods and services unless the Government establishes a plan to mitigate for the declining use and acceptance of cash in the Island.The Economic and International Affairs Scrutiny Panel has published a report into its review exploring the acceptance of cash payments in Jersey, which was launched in June 2024 following political debate and growing public interest in the topic.
Evidence submitted to the Panel suggests there has been a decline in the number of cash transactions taking place in the Island over the past ten years. The evidence indicates that, while the decline has slowed recently, the trend is likely to continue into the future.
During its review, the Panel found little evidence that the Government of Jersey has given much consideration to the issue and that no contingency plan has been produced to ensure sufficient resilience in the economy should the decline reach a critical point.
The Panel therefore recommends that the Minister for Sustainable Economic Development creates a strategy and set policy as to the acceptance of cash payments in Jersey. The strategy should identify actions that would ensure all Islanders have the same access to digital payment methods, increase education in this area and support the building of budgeting skills. The Panel has also asked that the appropriate consideration is given to how charitable organisations can best be supported during the transition to digital payments.
The Panel is concerned that the continuing decline in the use of cash could impact Islanders. The Panel is therefore recommending that the Minister issues guidance to businesses that they should not unreasonably refuse cash payments, and that differential pricing based on payment method should not take place. The Panel has recommended that this should already be the case for public services including any third-party providers of public services such as transport.
Deputy Montfort Tadier, Chair of the Economic and International Affairs Scrutiny Panel, said: ‘There has been significant public interest in this review, which can be seen through the large number of written submissions and survey responses the Panel has received. Many of the submissions reflected on the emotional connection Islanders have to cash, and the social benefits it can bring. But the Panel has also heard how, for some, access to physical coins and notes not only aids them with budgeting but helps them to better understand the value of goods and services.
It is clear to the Panel that the lack of strategy or plan from the Government in this area will have a detrimental impact on members of our community. By developing one, Government can lead the way in ensuring that everyone has access to good and services, no matter what payment method they prefer.
Evidence submitted to the Panel during the review suggested that some Islanders feel as though they are being penalised for choosing to pay for certain services with cash and concerns were raised that, if cash payments were to continue to fall, two-tier pricing structures could be introduced elsewhere. The Panel is clear that any formal strategy or policy that is produced should prohibit that from happening.’
The Panel is also aware of the concerns raised regarding the closure of some out-of-town bank branches and the impact on some Islanders ability to access not only cash but banking services too. It has recommended that the Minister for External Relations, who has responsibility for financial services, works with the sector to ensure there is a six-month notice period before any branch closures are implemented.
The Panel has also recommended that the Minister for External Relations continue to work with the banking sector on the establishment of banking hubs in locations outside of St Helier and to raise to with banks the possibility of providing more Smart ATMs across the Island.
During the review, the Panel received 136 written submissions from a wide range of individuals, businesses and organisations and 2,696 responses to an anonymous 5-minute survey which was released as part of the review.
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