‘Ban on cash means I can’t eat out or park my car’

Britain’s descent into a cashless society has alienated those who rely on physical money, writes Rachel Mortimer.

More than a third of shoppers expect to rely more heavily on cash as the price of essentials, eating out and getting around becomes more expensive this year, according to ATM company NoteMachine.

But the public will struggle to spend their hard-saved money, because thousands of shops, restaurants and service providers refuse to accept coins and notes from customers.

The pandemic dramatically accelerated the country’s move away from cash, but it has left the most vulnerable in society at risk of overspending and isolation – a third of those dependent on cash are aged over 65.

Brian Pearson, 83, has set a weekly budget in cash for the past 15 years. He said: “My wife and I work out our income and outgoings, pay bills, save a bit and then take cash out each week.

“I then know that is what I have to spend out and about on meals and such – it has worked perfectly and allows me to manage my pension.”

But the retired senior police officer, who lives in Essex, has increasingly had his cash refused by businesses and the local council.

“I don’t have a smartphone and don’t use contactless for security reasons. The more I am compelled to use bank cards indiscriminately, the more chance I have of running into budget problems.

“We are ordinary pensioners. We don’t have a huge amount of investments or dividends to fall back on and so sticking to our budget is really important,” said Mr Pearson.

In the past two months Mr Pearson has been unable to pay in cash at a café in Scotland, a pizza restaurant in a shopping centre and a local garden centre. His local authority, Thurrock Council, has also converted its street parking machines to only accept card payments, meaning he must park in a supermarket and walk further to vital services, such as the doctors and the post office.

Mr Pearson is not alone. Of more than 2,000 adults surveyed by ATM network Link, almost a quarter had recently tried to spend coins or notes in a shop, but had been forced to use a card because the business would not accept cash payments.

The Daily Telegraph has campaigned to stop the decline of physical currency through its Keep Cash campaign.

Earlier this year the Royal Society of Arts warned that roughly 10 million people, or one in five adults, would struggle to manage in a society without cash, after it found Britain was becoming a cashless society “against the public’s will”.

The move away from cash has been exacerbated by a decade of mass bank closures across the country.

Small business experts have warned the lack of bank branches on the high street has made it more difficult for retailers to deposit or access notes and coins, driving more to refuse cash as a method of payment altogether.

Half of Britain’s bank branches and nearly a quarter of free- to- use cash machines have closed in the past two years.

The Financial Conduct Authority, the City watchdog, has been granted powers to ensure local communities are not left without ATMs, bank branches or a local post office to withdraw or deposit cash.

But MPs have accused banks of closing their branches early to avoid the new laws that would force them to carry on operating cash machines.

In the best- case scenario, a cash machine that is free to use now requires a 22- minute round- trip for a fifth of shoppers, according to the research by NoteMachine.

Cash machine closures have also triggered a geographical divide. People in rural areas must travel more than 40pc longer than those in urban areas to access a free machine.

Mr Pearson said: “We feel like we are being pushed out of the community when multiple places refuse our money.

“It will be largely older people who feel the same.

“I am not comfortable using contactless payments. I used to have it when the payments were capped at £15, but once the limit started to rise, I stopped using it for fear of if it was stolen someone could rack up hundreds of pounds in spending.”

The limit on contactless spending rose to £45 during the pandemic to reduce the need to handle physical money amid virus fears. That limit was increased again to £100 last year.

But the public has increasingly shunned contactless spending to survive the escalating cost of living crisis. One in 10 shoppers plan to save money and budget using cash instead of card or contactless payments on their bank card or smartphone, according to recent research by Link.