Cash still a necessity for one in six

AROUND one in six people say cash is still a necessity despite the growth in new ways to pay, a report has found.

Some 17 per cent of people believe cash is an economic necessity, according to the interim findings of the Access to Cash Review.

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 alternative ways to pay 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 per cent) of people worry that going cashless would take away people’s right to choose, while 72 per cent believe that 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.