NEW calls have been made to protect the use of cash in Scotland as 'alarming' data shows Scotland has seen the most dramatic UK drop in cash machine use during the pandemic.

Six out of the top ten UK constituencies that have seen the biggest drop off in ATM use are in Scotland which has seen a 43% decline in withdrawals.

The average withdrawal in Scotland was £65, it is now £74.

Four out of the Scottish areas with the biggest slump in ATM use are in Edinburgh.

Cash machine transactions in Edinburgh East - home to some of the Scottish capital's most notable tourist attractions including Edinburgh Castle and Holyrood Palace - show the steepest decline of any parliamentary constituency in the UK with a 63% drop.

It is followed by Edinburgh North and Leith (-60%), Edinburgh South (-56%), Glasgow Central (-56%). Edinburgh West (-56%) and Orkney and Shetland (-54%).

Glasgow North East has seen the smallest decline in cash machine use with just a 29% dip followed by Glasgow East (-30%), Airdrie and Shotts (-31%), Rutherglen and Hamilton West (-33%) and Kilmarnock and Loudoun (-35%).

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Across the UK, according to the UK's main cash machine network LINK, cash withdrawals are on average down 40% since the beginning of the pandemic.

Cash withdrawals are down at least 20 per cent on pre-pandemic levels across every UK parliamentary constituency meaning consumers are withdrawing almost £100m less each day compared to figures from 2019. The data has led to new calls to protect cash, with Age Scotland’s Big Survey revealing that 11% of over 50s experienced difficulty accessing cash and other banking services during lockdown which will have made their lives more challenging.

And recent figures from the Financial Conduct Authority’s Financial Lives 2020 survey shows over five million people across the UK greatly rely on cash every day.

Adam Stachura, head of policy and communications at Age Scotland said: "It is absolutely vital that access to cash is protected. Huge numbers of people, particularly those how are older and on low and fixed incomes, rely on it for budgeting and payment. Indeed, those who might struggle to leave home and are not online may rely on others to buy things on their behalf and cash allows them that flexibility. Ensuring that there is easy and ready access to free to use ATMs, so people aren’t left with no choice other than a charge for withdrawing their own money, is also critical.

“Covid-19 has changed so many aspects of our daily lives, including how we pay for things, so it’s unsurprising to hear that people are now visiting ATMs less frequently but withdrawing, on average, greater amounts each time – possibly because they are still keen to limit their interactions in busy public places. “It’s also understandable that ATM use fell during the pandemic, after all many shops, restaurants and bars were closed for months, but those who were withdrawing cash really needed it.

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“These short term and recent trends belie the long term demand for cash from a great number of people. And the harder it becomes to access, of course numbers using it by choice drop, but we mustn’t forget about those who need it such as the 140,000 adults in Scotland without a bank account.

“It’s very important that we prevent further barriers to cash and continue to protect every person’s access to their money and ability to spend it. We want to see the UK Government introduce legislation as quickly as possible to protect free access to cash. For millions of older people and other citizens across the UK financial inclusion and independence relies on maintaining access to this essential payment method.”

Natalie Ceeney, chairman of the Access to Cash Review added: “More of us than ever are using alternatives to cash including contactless cards and mobile payments. However, there are between five to eight million people across the UK that rely on cash, and these people include those who are older, disabled and poorer than average. Digital payments are great for many people, but they still do not work for everyone. Simply let cash wither and die will leave millions excluded.”

Before the pandemic, each adult in the UK visited a cash machine on average three times a month.

However, 18 months after the Coronavirus pandemic started, it is now less than two times a month with consumers in Scotland now taking out on average an extra £9 each visit.

The average withdrawal in Scotland was £65, it is now £74.

This is a smaller increase in withdrawal value than the UK as a whole - across the UK, it was £66.99, and is now £78.54.

Nick Quin, head of financial inclusion at LINK said: “People are choosing new ways to pay for things, and Covid has turbocharged the switch to digital. “When we conducted similar analysis this time last year, we had an incomplete picture because before the vaccine rollout people generally were staying local, working from home and many leisure locations were still temporarily closed.

"ATM use in some city centres had declined by as much as 80% overnight. Now that life is returning to normal, people are still visiting ATMs much less often and taking out more each time. “Crucially, even though we’re withdrawing almost £100m less per day, millions still rely on cash, especially in the most deprived areas of the country. It is important we continue to protect access to cash across the country.”