Martin Lewis hits out after woman was 'humiliated' over Scottish money 'rule'
The age-old debate continues to divide the country over what is acceptable
People are being made aware of what counts as legal tender, as Scots are being met with frustration over the denial of Scottish banknotes once they leave Scotland and head to other parts of the UK. Martin Lewis has slammed the fact that some places in England refuse to take the "perfectly acceptable currency".
A fan of the MoneySavingExpert founder claimed on social media: "Down in London last week with my two sisters. We were initially twice refused acceptance of Scottish pounds. [We were] asked 'are they Euros!' and 'are they Counterfeit?'
"One place in Covent Garden, which was packed, must have thousands of Scots visiting. Completely humiliating! I'm amazed this still happens."
Martin Lewis responded on X by saying: "Ridiculous. Scottish notes are perfectly acceptable currency across the UK." He added: "Sorry that happened."
The response came after the popular ITV broadcaster mentioned legal tender in an X post. He said: "Legal tender only applies to what can't be refused in settlement of a Court debt. And it's a hodge-podge; neither Scottish nor English notes are legal tender in Scotland."
Can places in England really refuse Scottish banknotes?
The UK Government has confirmed that shops and businesses in England are under no obligation to accept Scottish banknotes as payment for goods or services. According to the Treasury, legal tender status "does not oblige businesses to accept a particular form of payment in everyday transactions".
What is legal tender?
The concept of "legal tender" in the UK has developed over centuries, with key legislation including the Bank of England Act 1833, also known as the Bank Charter Act, and the Coinage Act 1971. While the 1833 Act made Bank of England notes legal tender, the 1971 Act updated the definition and scope to reflect the modern decimal currency system that was introduced in 1971.
The Bank of England explained that the term is often used without a full understanding of its meaning. On its website, a spokesperson said: "Legal tender has a narrow technical meaning that will rarely come up in everyday life.
"The law ensures that if you offer to fully pay off a debt to someone in a form that is considered legal tender – and there is no contract specifying another form of payment – that person cannot sue you for failing to repay. A shop owner can choose what to accept.
"If you want to pay for a pack of chewing gum with a £50 note, it is perfectly legal to turn you down. Likewise, for all other banknotes, it is a matter of discretion. If your nearest corner shop decided to only accept payments in Pokémon cards, they would be within their rights to do so - but they would probably lose customers."
It further clarifies what counts as legal tender across the UK, as it varies by country. In England and Wales, it is Royal Mint coins and Bank of England notes, whilst in Scotland and Northern Ireland, it is only Royal Mint coins and not banknotes.
A spokesperson added, based on the guidance, that "English banknotes are not legal tender in Scotland." They continued: "Scottish notes are not legal tender in England or Scotland. Debit cards, cheques and contactless payments are not legal tender anywhere."