Keep cash flowing

Despite the precipitous decline in the use of cash in recent decades, physical money remains the preferred means of payment for millions of people. They prize the reliability of cash, the ability to retain some independence from a digitised financial system that is vulnerable to failure. In an age where every company is attempting to accrue as much data about you and your habits online as possible, cash also provides a degree of anonymity. Some even view it as a valuable defence against the risk that central banks will impose negative interest rates, which would see depositors charged to hold money in their own bank account.

The network for accessing that cash, however, is falling apart. Research by the consumer magazine Which? has found that 130 postcodes no longer have a cash machine, affecting around 115,000 people, and a further 129 areas have only one. The problem is compounded by the closure of Post Office branches and high-street banks.

Yes, there are new ways to pay for items in shops and restaurants – contactless cards and smartphone payments among them. But the shrinking availability of cash leaves behind the elderly and the poor, who are less likely to be able to access such services.

Which? wants the next government to legislate to ensure that consumers can keep accessing and paying with physical money. It is undeniable that debit cards, credit cards and the panoply of new payment options have made life more convenient for millions of people, but the ability to use cash is fundamental to a free society. It should not be abandoned lightly, and certainly not without any thought to those who will lose out.