UK cash system is 'at risk of collapse'

- The UK’s cash system will collapse without urgent legislation to protect it, according to a new study.

Panel members behind the Access to Cash Review, which published its final report a year ago, said action is needed to protect cash for as long as people need it.

They say that in the 12 months since their last review, significant issues within the country’s cash infrastructure remain.

The review was set up by ATM network provider Link to help understand how consumers use cash and how their requirements to access physical money will change over the next five to 15 years.

It previously predicted that society would be at the point of being "virtually cashless" by 2035, with fewer than one-in-10 transactions being made in cash.

But trade association UK Finance now expects the UK to hit this point within the next decade.

Panel members also pointed to figures showing that, over the past year, 13% of free-to-use UK ATMs have closed, as lower levels of cash use have made them economically unviable. About 25% of ATMs now charge people to withdraw their cash.

They also warn that the Post Office's cash access service is under serious threat.

Barclays recently reversed plans to stop customers accessing cash withdrawal services from post offices following a backlash.

Various initiatives have been set up by the industry to help maintain people's access to cash, including cashback initiatives at local shops and a "request an ATM" service.

But the panel said it believes the only way to manage the cash system is for the government to legislate and give regulators the tools that they need to protect cash access.