Businesses and charities unite in urging chancellor to safeguard cash

The latest salvo in the battle to protect cash from being overwhelmed by card payments comes as the government consults on its Future of Payments review.

Those who signed the letter include executives from the Association of Convenience Stores (ACS), the Rural Services Network and the Petrol Retailers Association (PRA).

They acknowledged the government’s recent cash access policy statement as a positive step, but said that a more comprehensive effort is needed to protect cash, including ensuring the ATM network receives the funding it needs.

James Lowman, chief executive of the ACS, said: “As well as cash still being used for more than half of convenience store transactions, customers use ATMs located at convenience stores to access cash for their daily needs.

“The treasury has committed to support a full range of payment options, including cash, for the long term, and we need to see improved ATM interchange fees to make sure this is delivered.”

Gordon Balmer, executive director of the PRA, added: “PRA represents independent fuel retailers who account for 64% of all forecourts. Our members provide fuel, food and services to motorists keeping them on the road.

“With the demise of the local high street bank, time-constrained customers value that forecourts have an ATM, enabling them to withdraw cash quickly and efficiently.

“The PRA is happy to support cash as a payment method of the future, uphold customer payment choice and give consumers the diverse payments landscape they require.”

Despite the evolving landscape of digital payments, cash remains the second most widely used payment method in the UK, accounting for 15% of all payments.

During the cost-of-living crisis, many customers appear to have used cash as a tool for budgeting, allowing for greater financial control and flexibility.

But since 2018, 14,400 free-to-use ATMs have been withdrawn in the UK, and an additional 37,000 now face the imminent risk of closure or conversion to pay-to-use machines.

Critics argue that this trajectory jeopardises the role of cash and endangers the financial inclusion of the poor and vulnerable.

Kerry Booth, chief executive of the Rural Services Network, said: “Ensuring that rural residents have access to cash is vital particularly for older residents who may not use online banking services and those in more remote isolated communities.

“Lack of broadband and mobile telephone signal can impact on users’ ability to access digital banking systems.

“These residents should not be left disadvantaged as technology develops and their right to access cash should be protected.”