A growing number of Britons are finding it increasingly difficult to access cash, with fewer than half of residents in 18 local authorities now living within a one-mile radius of a cash point, according to new analysis.
Peterborough has emerged as one of the worst-affected areas, with only 21% of residents able to access cash within a mile of their homes.
Middlesbrough and South Tyneside follow closely, with fewer than 30% of people in these areas able to find a cash point within the same distance.
The analysis by Fair4All Finance, which examined Financial Conduct Authority (FCA) data across 361 local authorities, highlights a worrying trend: in areas where over half the population are classified as financially vulnerable, access to cash is notably limited.
Diane Burridge, a director of Fair4all Finance said: “Access to cash is critical for millions who rely on it to manage their daily expenses, yet it’s increasingly out of reach for many communities.”
Towns like Harlow, Sunderland, and Blackburn with Darwen also report alarmingly low levels of cash availability.
While more than 97% of people in Britain live within a mile of a cash withdrawal point, fewer than one in three residents in Peterborough, Middlesbrough, and South Tyneside have access to a cash point within that distance.
Fair4All Finance warned that reduced cash availability disproportionately impacts financially vulnerable households, many of whom rely on cash for budgeting and transactions. The decline in access could exacerbate financial hardship for these communities.
The Financial Conduct Authority estimates that approximately three million people in the UK depend on cash for most or all of their purchases.
According to UK Finance, 1.5 million adults used cash as their primary spending method in 2023, marking the first increase since 2019. This shift is largely attributed to the cost-of-living crisis, with more households turning to cash to manage their budgets effectively.
This comes as around 6,100 bank and building society branches have closed since January 2015 across the UK, or are due to close by the end of 2025, according to data collected by Which?.
10 most cashless towns
- Peterborough – 21%
- Middlesbrough – 23%
- South Tyneside – 27%
- Sunderland – 28%
- Stevenage – 30%
- Bradford – 30%
- Harlow – 37%
- Rochdale – 37%
- Bolton – 38%
- Burnley – 39%
Labour has pledged to open at least 350 banking hubs by the end of Parliament for bankless communities. There are currently 100 hubs in operation.
The Government hopes to open 230 more banking centres by the end of next year.
Banking hubs are operated by multiple providers and give communities access to banking services and face-to-face support.
