Shops and services may have to be forced to accept cash in the future to help protect vulnerable people who rely on it, MPs have said.

A Treasury Committee report into cash acceptance stopped short of recommending a change in the law, but said the government had to improve its monitoring of the issue, the BBC reported.

The report said: "There may come a time in the future where it becomes necessary for HM Treasury to mandate cash acceptance if appropriate safeguards have not been implemented for those who need physical cash."

Some countries, such as Australia and parts of the EU, are planning requirements to accept cash for essential services in some circumstances.

In evidence to the inquiry, a government minister said there were no plans to make cash acceptance mandatory.

Shops and services can currently accept whichever form of payment they want.

With an increasing number going card-only, the committee said prices would rise for essential goods and services in the remaining outlets that accepted cash.

That would create a poverty premium for those who wanted to use cash to budget, as well as for vulnerable groups such as people with learning difficulties and the elderly.

Dame Meg Hillier, who chairs the influential Treasury Committee, said a "sizeable minority" depend on being able to use cash.

She said the report should be a "wake-up call" about the risks of ignoring those affected by the falling use of banknotes and coins.