Without urgent new laws to safeguard the availability of banknotes and coins, the cash system in the UK could be at “risk of collapse,” say campaigners.
Pressure is being applied on new Chancellor Rishi Sunak to address the issue in his first Budget set for March 11, reports the BBC.
The continued shift to digital payment methods has left cash use at an all-time low, with just 11bn cash payments in the UK in 2018, forecast to fall to 3.8bn in 2028, which would represent nine per cent of all transactions.
Almost two million people in the UK do not have access to a bank account, according to the Financial Inclusion Commission, and cash is their only method to pay for essential services.
The majority of the UK’s arcades, FECs and pubs which provide homes for the country’s amusement with prizes machines, still run on a cash basis.
However, 13 per cent of fee-free ATMs disappeared across the country in 2019, with their operation being deemed economically unviable.
The BBC quoted a spokesperson for the Treasury saying: "Technology has transformed banking for millions of people, but we know that many still rely on cash.
"That's why we've invested £2bn to ensure everyday banking services are available at 11,500 Post Office branches across the UK.
"We're also working closely with industry and regulators to ensure everyone who needs cash can access it."
