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The use of cash in stores increased for the second year in a row after a decade of decline, according to retailers.
Notes and coins were used in a fifth of transactions last year, the British Retail Consortium (BRC) said, as shoppers found that cash helped them budget better.
The amount spent per purchase also fell slightly, from £22.43 in 2022 to £22.03 last year, it said.
The findings were published after charities told a committee of MPs that many groups were being excluded from essential services and community venues which had started refusing cash.
They cited problems for women in abusive relationships, whose partners use a bank account as a form of control or to track their movements.
Deidre Cartwright, policy manager at the charity Surviving Economic Abuse, said: “Often, access to cash is the only way to access essentials for themselves and their children.
“It’s a way for them to escape an attacker, especially when that attacker can track them through a bank account, so it’s extremely important for their safety and survival.”
Some older people and those with mental health problems were also much more comfortable with cash, the Treasury Committee heard, or did not have the digital skills or mental capacity to operate on cash alone. cards, computers or telephones.
University recreation centers become cashless
Charities said exclusion was seen across a wide range of services and locations.
Wayne Crocker, director of Mencap Cymru, said people could have the choice of going to an alternative cafe if another cafe in town decided to stop accepting cash.
However, if a city's only theater – or that of a university – became cashless, some of the most vulnerable people would no longer be able to attend.
Ron Delnevo, of the Payment Choice Alliance, said leisure centers, parking services and public transport catering were among the many services that could no longer accept cash.
“We have heartbreaking stories from families of people with disabilities, who feel that not accepting cash takes away their self-esteem,” he said.
“It was their money and they had the right to spend it, and they are told that their money is no longer good. They take that to mean that they are no longer worth anything.”
The BRC said all major retailers were committed to accepting cash in their stores.
Figures published in July by banking body UK Finance show that the majority of young people pay for their purchases using smartphones or watches.
Nearly three quarters (72%) of 18-24 year olds regularly use their digital wallet to make contactless payments.
But the study also found that the number of people who primarily used cash for everyday spending had hit a four-year high due to the cost of living.
This was confirmed by the latest BRC data.
“Persistent inflation and the cost of living crisis have continued to impact households across the country and many consumers have been using cash to budget more effectively,” said Chris Owen, payments policy advisor at the BRC.
The trade body wants regulators to take meaningful action on fees charged by card companies.
Small businesses have also asked banks to keep their branches open or provide adequate facilities for them to deposit cash.
Banking data shows that cash remains the second most popular payment method, after debit cards.
Tougher rules to ensure banks and building societies offer access to cash have been announced by the City watchdog, the Financial Conduct Authority (FCA).
He said his new rules would force banks and building societies, when considering branch closures, to plug gaps in access to cash with measures such as banking centres, ATMs tickets and post offices.
