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Daily Mirror
Daily Mirror
Business
Emma Munbodh

You'll soon be able to get cashback in supermarkets without buying anything at the till

Brits will be able to get cashback from shops without needing to buy anything under new proposals to protect the UK's access to cash.

Under new rules, shoppers will be able to use till points as ATM machines, without the need to spend, the Treasury said.

The measures are being introduced amid a decline in cash payments, with billions more spent on plastic this year, triggered by the coronavirus pandemic.

It comes as the contactless limit was raised from £30 to £45 in April to cut the need for physical contact on the high street.

The report said the new proposals will protect access to cash for vulnerable groups - such as the elderly.

Right now, it's against EU rules for shops to offer cashback to consumers who aren't purchasing goods, however, the Government is proposing scrapping these rules at the end of the Brexit transition period on December 31, 2020.

The rules would mean consumers would be able to get cashback from shops of all sizes, without making a purchase (E+)

John Glen, Economic Secretary to the Treasury, said: "We know that cash is still really important for consumers and businesses – that’s why we promised to legislate to protect access for everyone who needs it.

"We want to harness the same creative thinking that has driven innovation in digital payments to maintain the UK’s cash system and make sure people can easily access cash in their local area."

It said when local shops accept and dispense cash, it is recycled through local communities and there is less need to transport and distribute notes and coins via cash centres, which reduces the associated costs.

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Last year, consumers received £3.8billion of cashback when paying for items at a till – making it the second most used method for withdrawing cash in the UK behind ATMs.

Current EU law makes it difficult for businesses to offer cashback when people are not paying for goods and this has been a barrier to widespread adoption.

The Government is said it is consulting on plans to scrap these rules in December, with the call for evidence due to close on 25 November 2020.

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