British public withdraws £100m less from cash machines every day
The British public now withdraws £100m less from cash machines each day, compared to pre-pandemic levels, after many retailers banned customers from paying in cash.
Consumers now visit cash machines less than twice a month on average, down from three times a month before the pandemic hit, according to Link, the cash machine network.
The company said Covid had "turbocharged" the switch to electronic payments, with the majority of transactions now taking place using debit and credit cards.
Many retailers still refuse to accept cash despite the lifting of Covid restrictions. A recent report warned that a fifth of shoppers had been turned away when trying to pay with cash since lockdown rules were eased.
Customers typically now take out an extra £10 during each visit to a cash point, Link said, withdrawing just under £80 on average.
Despite cash being shunned by some businesses, it remains widely used by many groups, particularly the elderly and vulnerable. Around eight million adults would struggle without cash, while 1.4 million people do not have a bank account, according to the Post Office.
About 16pc of vulnerable adults rely on notes and coins, and dependency on physical money is highest among pensioners, according to the Financial Conduct Authority, the City watchdog. A separate study by the FCA found that nearly a quarter of people aged 18 to 24 had struggled to cope with businesses banning cash. Many young people prefer cash for budgeting purposes.
Cash withdrawals have dropped the most in the constituency of Edinburgh East, falling by 63pc since 2019, Link said. The City of London has seen a 60pc decline, as has Edinburgh North and Leith. Constituencies in Glasgow, Belfast and Bristol also featured in the top 10 areas withdrawing cash less often.
Liverpool Walton, Bradford South and Birmingham Hodge Hill were the constituencies showing the least change, with the public in these areas making withdrawals 20pc less often compared to pre-pandemic levels.
Link's Nick Quin said: "Even though we're withdrawing less, millions still rely on cash, especially in the most deprived areas of the country. It is important we continue to protect access to cash."
Earlier this year, Telegraph Money's Keep Cash campaign secured commitments from more than 20 high street retailers to continue accepting physical currency. More than 50 politicians from across the political spectrum have also backed this newspaper's campaign.
