Insufficient funds

Fewer cash machines means some people could be left behind

CASH is getting harder to get your hands on, as figures show thousands of ATMs have disappeared from the UK’s streets in the last few years. The Federation of Small Businesses (FSB) says access to physical money is still vital for millions of people especially the eldery and vulnerable – and boosts local economies.

An analysis by the House of Commons Library found 12,986 cash machines have been closed across the UK in the three years to July leaving 52,951.

That’s a reduction of around a fifth (19.7%) – and means there are now the equivalent of 7.9 holes in the wall per 10,000 of the population, compared to 9.8 in July 2018.

Cash was no longer king even before the Covid-19 pandemic – figures show such payments accounted for little more than one in five (23.3%) payments in 2019.

The arrival of the coronavirus accelerated the trend, as the spending limit for contactless card payments rose from £30 to £45 in April 2020 – in part to limit the virus’s spread.

In 2020, cash payments made up just 17.1% of transactions, according to UK Finance.

And the move away from notes and coins looks set to continue after the contactless payment limit increased again to £100 this month.

But there are fears some groups who rely more on cash for their daily lives will suffer as it becomes harder to find.

According to the House of Commons Library research, that includes lower-income households and those without access to the internet – more common among older people.

It also found cash use appears to have declined less in more deprived areas during the pandemic.

The figures show the decline in the presence of cash machines has been faster in some areas than others.

In London, the number dropped 22.8% to 7,568 in July this year, while in Northern Ireland it only fell by 14.9%, to 1,770.

Scotland can boast the most ATMs per head – at 9.4 per 10,000 residents, while people in the East Midlands are the most likely to be left short – with only 5.8 per 10,000.

Cash machines provide the vast majority of withdrawals, but the research also found other opportunities to top up are becoming more scarce.

The number of bank and building society branches across the UK fell by 4,535 (34.0%) to 8,810 between 2012 and 2021, according to Office for National Statistics estimates. Numbers are rounded to the nearest five.

Mike Cherry, national chair of the FSB, said people should have ready access to money in the way that works for them.

He added: “Equally, businesses should be empowered to respond to customer preference, through access to deposit and withdrawal facilities and reasonably-priced card terminals – many opt for a combination of the two.

“Members tell us that cash infrastructure – especially branches – not only ensures free access to cash and banking support, but it also serves as a draw for a town generally, increasing footfall for surrounding firms.

“Cash remains a critical part of the payments mix. It’s integral to the daily lives of millions of consumers, not least the vulnerable, the elderly, people with disabilities and those who use cash for budgeting.”

In July, the Treasury published a consultation on access to cash, which included proposals to make certain firms such as retail banks guarantee deposit and withdrawal facilities for customers within certain distances.