Using cash in the UK could soon become impossible if more banks close and shops stop accepting it, Bank of England warns

• Closing banks could mean retailers stop accepting cash as they can’t deposit it
• It became more popular to pay with a debit card than cash in 2017 in the UK 
• About 2.2million people rely mostly on cash for everyday spending and 1.3million don’t even have a bank account 

Families could soon find it impossible to use cash as bank branches disappear and shops stop taking it, a Bank of England official has warned.

Although use of paper money is declining, millions of people will always want to use it, says chief cashier Sarah John.

She warned many are at risk of losing access to cash without urgent action.

Using cash in the UK could soon be a thing of the past, with 84 per cent of payments expected to be made by card by 2027

Miss John said: ‘In order for cash to remain a viable payment method, the public needs access both to withdraw cash and to deposit cash. And if retailers cannot easily deposit the cash they receive from customers, they may choose to stop accepting it.’

Speaking at a conference in Dubai, Miss John said it became more popular to pay with a debit card than cash in 2017 in the UK. By 2027, only 16 per cent of payments will be made with traditional money, she said. But 13billion payments a year are still made with cash – more than a third of the total.

About 2.2million people rely mostly on cash for everyday spending – 4 per cent of the adult population. And 1.3million people have no choice because they do not have a bank account.

More than 6,000 bank branches have closed since the late 1990s. Thousands of free ATMs are also disappearing due to a cut in fees paid to independent operators by banks.

And some shops are choosing to go cashless due to the costs of handling coins.

The Bank is committed to helping people carry on using cash for as long as they want to, Miss John said. 

Chief cashier Sarah John said it became more popular to pay with a debit card than cash in 2017 in the UK

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