Concerns over stores still refusing cash

Around one out of five consumers have been blocked from paying by cash in recent months despite lockdown rules easing, according to consumer watchdogs.

Which? says a two separate surveys, covering more than 3,000 people, found that 18% of people reported being unable to pay with cash at least once when trying to make purchases between April and July.

The survey found people were most likely to be unable to pay in cash when shopping for groceries – 35% of incidents – followed by small purchases in shops and buying refreshments while out.

Eight in 10 consumers believe businesses and shops should continue to accept cash, the consumer group found.

Previous Bank of England research suggested it is unlikely that people would catch coronavirus from banknotes.

Jenny Ross, Which? money editor, said: "Cash is still a vital way to pay for millions of consumers, so it's very concerning to see many people still reporting difficulties when trying to spend their notes and coins, even as the country moves out of lockdown restrictions."

Which? is encouraging firms to sign up to its cash friendly pledge to ensure people who use cash regularly are not excluded by the transition to digital payments.

The Government has said it will legislate to protect the future of cash and the watchdog says the Financial Conduct Authority should be tasked with tracking levels of cash refusal.

Natalie Ceeney, who is leading the banking industry Access to Cash Action Group, said: "This is really worrying. Not everyone is able to use digital and contactless payments.”