The cashless society and older people

As we see the UK rapidly heading towards a ‘cashless society’, it’s important to realise how this could negatively affect elderly people.

Following the Corona virus pandemic, transaction payments by card saw a rapid increase. According to UK Finance, there were 1.6 billion transactions in February 2020 alone which is a 9.2% increase from last year.

Although a cashless society would provide convenience for many, it will see vulnerable groups with lower incomes suffer.

During the pandemic, elderly people instructed to shelter at home relied on their neighbours to buy their shopping. With over 2.3 million people aged 70+ not having an internet connection at home, this meant they relied on cash reimbursements. Online banking was simply not a possibility for many.

The vast closure of banks and ATMs across the UK over the last few years is making it harder for elderly and vulnerable groups to access cash. Many of these groups use cash to pay bills and top-up gas and electric at local shops or supermarkets.

“The scale of bank and ATM closures and redundant ATMs during the pandemic marks an acceleration of a trend that was already of real concern” says Caroline Abrahams of Age UK.

Threats to vulnerable groups such as the elderly could include:

• An inability to identify scams
• Struggling to pay cash-based bills
• A lack of technological capabilities to budget online
• Being exploited by local grocery suppliers who charge a premium (as seen during covid)

Whilst these implications may seem daunting, it is important to know that there is support available all around you.

Our Information and Advice team are able to conduct benefit checks and discuss other financial issues free of charge. Through 2018-2019, we helped claim £1.7 million in unclaimed benefits for our local community.

Taking into account the above, it’s worth noting the benefits of a cashless society:

• Minimising the risk of infections like Covid-19 
• Easier currency exchange whilst travelling abroad
• Better tracking of budgets and spending through data
• Lowered theft rates due to a lack of physical cash

For further information and expert advice, ring our Information and Advice team  on:

Telephone number 0191 280 8484

Photo by Nathan Dumlao on Unsplash