Finance experts are worried about the future of cash usage in the UK, after many Brits switched to digital payments during the pandemic.
It comes as nearly a quarter of free-to-use ATMs have vanished since 2018 and almost half of bank branches have been earmarked for closure since 2015, according to Which?. The consumer group said customers who rely on face-to-face banking services and cash to pay for everyday essentials are at risk of "being cut adrift".
The UK Government has previously said it will legislate to protect the future of cash, and Which? is calling for this to happen in the Queen's speech next month. The consumer champion also sent a letter to the Treasury on Monday which says: "With rising living costs placing additional pressure on people's personal finances, the consequences of being unable to withdraw cash for those consumers who already rely on it could be significant."
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The letter continues: "Unless legislation is introduced urgently, the ability to access, spend and deposit cash could be permanently lost for many consumers, leaving some of society's most disadvantaged at risk of financial exclusion with no way to pay for the goods and services they need in their daily lives."
Which? money editor Jenny Ross said: "It really is now or never to halt the cash crisis. Though banking industry proposals for action are welcome, what's needed most is the legislation promised by the Government to protect cash. This should also include making the FCA (Financial Conduct Authority) the key regulator to protect cash services."
The Post Office helps to fill gaps in the cash system. It has an agreement with many banks which allows the banks' customers to do their day-to-day banking over post office counters. Other industry initiatives have also been taking place to protect cash access, such as cashback in shops and "banking hubs" where facilities are shared.
Ross Borkett, head of banking at the Post Office, said: "In many places across the country, Post Office is providing the last counter in town where people can access cash. Our postmasters continue to provide convenient and secure access to cash services, helping to protect cash and supporting local communities and businesses."
John Howells, CEO of ATM network Link, said: "While cash usage has fallen by around 40% since the start of the pandemic, millions of consumers including some of the most vulnerable still rely on cash every day. Link believes that consumers in every community across the UK should have free access to cash and works with the industry to maintain it."
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