More than 5,000 bank and building society branches have closed over the past seven years, according to an analysis from Which?
The consumer group said 5,162 branches had closed since January 2015. And a further 206 are set to close by the end of 2023.
Rocio Concha, Which? director of policy and advocacy said: ‘The shift to paying digitally has made life more convenient for millions, yet there remains a significant minority for whom cash is still vital.
Those who rely on cash need protection from a bank branch and ATM closures, with a minimum level of free access to cash guaranteed to ensure they don’t have to pay to withdraw their own money.
‘While businesses are best placed to decide whether or not to accept cash, we mustn’t sleepwalk into a situation where cash users struggle to make purchases or are excluded from certain services.’
The Government has said it will legislate to protect the future of cash. While some shops are still ‘cash only’, customers may find they cannot use cash at all in other stores.
ATM network Link recently found that nearly half (45 percent) of the public had been somewhere where cash has not been accepted, or has been discouraged.
Graham Mott, director of the strategy at Link, said: ‘Despite all the talk about the death of cash, it is worth reminding ourselves of how important cash is.
‘Compared to 2021, the number of transactions this year is up around 5 percent. Year-on-year we’re also seeing people take out more cash when they visit cash machines.’
The Post Office has an agreement with many banks that allows customers to do their everyday banking over its counters.
The Daily Mail has long campaigned to protect Britain’s local post offices.
Ross Borkett, head of banking at the Post Office, said: ‘Post Office data shows many more families on low incomes are turning to cash to budget in light of cost-of-living increases and the added financial pressures in the run-up to Christmas.
‘It also remains critical that local businesses can deposit their takings easily in their local branch to maximize the time they can spend trading during these challenging times.’
Trade association UK Finance’s figures show that 1.1 million people mainly use cash when doing their day-to-day shopping.
A spokesman said: ‘While many customers are opting to use mobile and online banking to manage their money, the banking industry is committed to ensuring people can do their banking face-to-face too.’