More than a million adults in the UK don’t have a bank account, and rely solely on cash.
Which? did a study that found free to use cash machines are disappearing at an alarming rate, so as it becomes increasingly harder and more expensive to withdraw money, who might be among the worst hit by the lack of cash? Bank of England figures show that 2.2 million people are almost entirely reliant on cash. Among the biggest cash users are poorer people.
The homeless
For homeless people, who without an address are often unable to open a bank account, cash is essential fro every day life. Jon Glackin, founder of homeless charity Streets Kitchen, said a society in which cash is rarer would be “tricky” for people who are sleeping rough. “For them to purchase things, they need cash, they are isolated. Often they don’t have access to a banking system or access to a debit card.” But despite the use of cash declining, studies have shown that donations made to the homeless haven’t declined with it.
Takeaways and the food industry
A lot of independent food businesses don’t accept card payments. For example fruit and veg shops and some takeaways. It’s estimated as much as 20% of all fish and chip shops are cash only, and an example of how card payments affect business is shown by Mr Luton, who owns a fish and chip shop in Euxton.
“Where my shop is, there is a parade of shops, we have got a Chinese, a sandwich place. So if somebody pulls up outside and they have no cash, they will go to the other shops rather than come to me.”
It’s possibly one of the best changes he’s made for his business, saying it is “fantastic, quicker than cash if you use contactless, a lot safer and more hygienic with less banknotes. It’s a positive step.” He said gradually more fish and chip shops were going electronic, adding “I have heard of shops now taking 70% of their payments by card.”
Cash based trade businesses
In the past, window cleaners would often wash customers’ windows during the day while they were at work, and then return in the evening to collect cash payments. Now, that is changing.
Andrew Lee, who owns the local business J A Lee window cleaners in Workington, said payments are gradually going electronic but that there are still “lots of window cleaners out there who will only take cash”, especially smaller companies. “Certainly my own company, we have seen a gradual move from cash over the last five years. Once upon a time we used to get a lot of cash a week, now it’s less than 10%. Even the residential houses, we clean over 1,000 a month and less than 10% will pay in cash.”
Some think the gradual move away from cash is a good thing, as it’s believed your money is more secure in a bank and much easier to access. But the lack of cash machines in some areas has people describing it as a ” real issue”, and as if it’s like we’re going back to the “dark ages”.
