There is a “clear” north-south divide in cash use that highlights inequality issues, according to new research by Co-op.
The Co-op’s ‘Way we pay’ report has found that, while cash use has fallen from 54% to 28% since 2016, in many areas cash payments remain as high as 44%; counties in Northern Ireland, the Northeast, Wales, and Scotland top the list.
The same areas have also been hit by bank closures, with half of all banks closing since 2015, while the majority are also affected by poverty and high unemployment levels, according to the retailer.
Despite London topping the list of locations where contactless payments are most common, some boroughs still see one-in-three shoppers paying by cash.
In terms of the areas least dependent on cash, English counties made up 80% of the list – with 50% of those in the Southeast and 25% in the Southwest – where unemployment levels are low. The only northern English county with a reduced reliance on cash is Greater Manchester.
Meanwhile, additional research from Which, also featured in Co-op’s report, has shown that those most likely to use cash are people in the lowest income households and it suggests that a third of respondents whose annual income was lower than £20,000 found cash easiest to budget.
The data also revealed that many people who do not regularly use notes and coins would use more cash to help manage finances as budgets are squeezed during the cost-of-living crisis.
As part of the research, the Co-op has launched a charter aiming to safeguard easy access to cash, which includes protecting the use of cash in stores; offering free-to-use cash machines while also retaining free-to-use cashback facilities at stores without ATMs; and supporting community access to cash through banking services provided through its post office counter network and One Banks in-store services.
“Insight and data within our latest report indicate that while contactless has become the preferred way for many to pay, cash still remains a key payment method that the public looks to for confidence and security,” Matt Hood, Co-Managing Director of Co-op Food, said.
“The clear north-south divide highlights the inequality issues that are still apparent in society today, despite the government’s levelling-up agenda. By introducing this charter and making these commitments we can continue to protect and provide easy access to cash, particularly in those communities that rely on it most.”
