Cash still a necessity for one in six people, review finds

The initiative is being funded by ATM network Link, which said the review is independent from it.

It was set up in July with the aim of understanding consumer needs and the implications for cash access requirements over the next five to 15 years.

Cash use has declined rapidly in recent years, as alternatives such as contactless payments have seen a rapid growth in popularity.

But some people still rely heavily on using notes and coins and there have been concerns that bank branch and ATM closures could make it harder for people to access physical money.

Three quarters (74%) worry that going cashless would take away people’s right to choose, while 72% believe vulnerable groups of people would be more likely to get scammed or defrauded if this happened, the review found.

Chaired by Natalie Ceeney, a former chief executive of the Financial Ombudsman Service, the review warned that if the UK moves too fast towards being “cashless” without including all parts of society, millions of people could be left behind.

Rural communities with poor broadband and mobile connectivity could be particularly at risk by restricted access to cash, as could people juggling tight budgets who use cash to help them stay out of debt, the review said.

Cash can also give financial independence to people in a difficult or abusive relationship.

The research also found people are quite evenly split on whether there will be a cashless future in their lifetime.

Just over four in 10 (41%) people believe it will happen, compared with 38% who believe it will not.

Ms Ceeney said: “The decline in the use of cash has been dramatic, and with rapid technology development and adoption this trend will continue.

“But for millions of people in the UK, cash is not a choice, it’s a necessity.

“If we don’t plan carefully for a world of lower cash - in other words, if we sleepwalk into a cashless society - millions of people will be left behind.”

So far, the review has gathered evidence from more than 120 organisations from across the leisure, retail, financial, charity and business sectors and has travelled the country taking evidence from people.

An online survey of 2,000 people across the UK was also carried out.

The review will publish its full report and recommendations in early 2019, with suggestions for Government, regulators and others.