SHOPPING WITH CASH RISES FOR FIRST TIME IN A DECADE – Shoppers keep a close eye on their budgets while prices rise

Cash use has grown for the first time in 10 years as shoppers keep a close eye on their budgets while prices rise, retailers have said.

The British Retail Consortium said 19% of purchases were made with notes and coins last year, echoing a report by banks showing a slight rebound.

The figures come as the financial regulator is set to consult on a plan to help people access cash.

Ministers say banks will be fined if money cannot be withdrawn or deposited.

Under government rules, free withdrawals and deposits will need to be available within one mile for people living in urban areas.

In rural areas, where there are concerns over “cash deserts”, the maximum distance is three miles.

Cash was used in 19% of transactions last year, according to retailers, up from 15% the previous year. Until 2015, notes and coins were used in more than half of transactions and, while card use now dominated, cash still had its benefits.

The consortium said consumers were budgeting carefully to try to cope with cost of living pressures, and there was also a “natural return” for cash after it slumped during the pandemic.

In September, banking trade body UK Finance also reported that cash use had risen for the first time in a decade, pointing to the financial impact of rising prices. But it said it expected cash use to decline over the coming years, once the current financial squeeze had eased