- 18 areas have no cash point within a one-mile radius
Fewer than half of residents in 18 local authorities across Britain now have access to cash within a one-mile radius, a new report reveals.
Peterborough is now one of Britain’s most financially forgotten towns, with just 21 per cent of people able to access cash within one mile, Fair4All Finance analysis of FCA data shows.
It is followed by Middlesbrough and South Tyneside, where fewer than three in 10 people can access a cash point within a mile radius.
The analysis looked at 361 local authorities across Britain and found 18 areas where more than half of the adult population are living in financially vulnerable circumstances and less than half have access to cash within a one-mile radius.
Peterborough, Middlesbrough, and Sunderland have the lowest levels of cash accessibility across the country.
Other areas like Harlow, Sunderland, and Blackburn with Darwen show a similarly alarming trend, though Darwen received a banking hub this week following a community request after bank branch closures in the town.
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Most of the population – more than 97 per cent – live within one mile of a cash withdrawal point. But fewer than one in three residents in Peterborough, Middlesbrough and South Tyneside can find a cash point within one mile of them.
Fair4All Finance said limited cash availability risks making it more difficult for those already facing financial hardship as vulnerable households often depend on cash for budgeting and transactions. This is further impacted by dwindling cash access points.
Around 3million people rely on cash for most or all purchases, according to the FCA.
Some 1.5million adults used cash as their main spending method last year, according to UK Finance data – the first rise since 2019.
It said this can be attributed to the cost of living crisis, with more people choosing cash to budget. Just 900,000 used coins and notes as their primary spending method in 2022.
| Local authority | % of people within 1 mile of cash access |
|---|---|
| Peterborough | 21% |
| Middlesbrough | 23% |
| South Tyneside | 27% |
| Sunderland | 28% |
| Stevenage | 30% |
| Bradford | 30% |
| Harlow | 37% |
| Rochdale | 37% |
| Bolton | 38% |
| Burnley | 39% |
| Coventry | 41% |
| Ipswitch | 41% |
| Oldham | 42% |
| Hyndburn | 43% |
| Blackburn with Darwen | 44% |
| Walsall | 45% |
| Blaenau Gwent | 45% |
| Stoke-on-Trent | 46% |
Labour has pledged 350 banking hubs by the end of Parliament for bankless communities, with 100 of the hubs now open.
Banking hubs have a traditional counter service operated by the Post Office, and community bankers from nine major high street banks operate on a rotating basis to provide support to customers with their banking needs.
There are 19 towns which could be set to receive a banking hub due to them only having one bank branch in town, incuding Windsor, Glastonbury, Whitstable and Alloa.
ATM network Link conducts community assessments following the announcement of the closure of any high street bank, a significant change in the hours or services provided, or when a member of a community requests it.
Link then recommends new banking hubs or deposit services and they are delivered by non-profit organisation Cash Access UK, which is owned by the banks.
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.’
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