Brits should hoard cash in case of Spain and Portugal style blackouts, Treasury warned
30 April 2025, 09:09
Brits should hoard cash in case the UK is hit by blackouts like those experienced in Spain and Portugal, the Treasury has been told.
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MPs have called on Downing Street to highlight “the value of physical cash in emergency preparedness.”
The use of paper cash has been on the decline for decades now, with physical transactions, which accounted for just over half of transactions in 2013, now making up just 12 per cent of payments.
The Commons treasury committee issued the warning following massive blackouts in Spain and Portugal, which left millions unable to pay with their bank cards.
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It highlighted the risk of “cyber attacks” and the prospect of an online banking crash bringing chaos to “critical financial market infrastructure”.
The committee wrote: “In discharging its responsibility for national security and resilience, HM Treasury must consider the value of physical cash in emergency preparedness.
This may include recommending that cash is held by individuals in case of emergency, and considering what role cash distribution might play in a severe payment systems outage.”
The committee looked into a banking crash that affected Barclays customers in January, leaving Brits unable to receive or send cash.
Currently, the shelves of Marks & Spencer stores across the country a barren after a cyber attack forced workers to stay home.
A Treasury spokesman said: “Cash continues to be used by millions of people across the UK, and we are working with the banks to roll out 350 hubs by the end of this Parliament so that people and businesses in areas that have lost local bank branches still have access to it.
“We welcome businesses who do want to continue accepting cash, and new rules introduced by the Financial Conduct Authority support this by helping them to make deposits.”
