Physical banknotes and coins can be essential for some people’s safety and survival, a committee of MPs has heard.

The Treasury Committee was hearing from charities working with vulnerable groups and organisations which promote financial inclusion, as part of an inquiry into physical cash acceptance.

Deidre Cartwright, public affairs and policy manager at charity Surviving Economic Abuse, said: “Victims and survivors of economic abuse and domestic abuse more widely are dependent on cash for their safety and for their survival.

“And we know this because victim survivors’ access to a bank account is controlled and often times access to cash is their only means to actually accessing essentials for themselves and their children.

“It’s a means for them to be able to escape an abuser, especially when that abuser can track them through a bank account, so it’s incredibly important for their safety and survival.

“And I think what people also don’t know is how vastly prevalent this is, it’s not just a small subset of people who are affected by this.”

She said recently released research by the charity indicated 4.1 million women in the UK have experienced a partner or ex-partner controlling their access to money and economic resources “so this definitely isn’t a small issue – many women need access to cash”.

Ms Cartwright later told the hearing that economic abuse perpetrators may restrict access to the identification that people need to open a bank account.

Chris Brooks, head of policy at Age UK, told the hearing: “There are still a couple of million pensioners who don’t use the internet at all, and many more who lack the skills to use it proficiently.

“And managing your money online is really challenging for a lot of people.”

He also later highlighted the challenges people face around scams, as well as cultural attitudes towards cash, adding: “People simply trust cash, so it’s a matter of trust.”

Conor D’Arcy, deputy chief executive of the Money and Mental Health Policy Institute, told the hearing: “I think there’s still some work to be done on understanding how mental health problems affect us practically, so that’s things like memory, like making decisions, like staying on top of accounts and budgeting.”

He continued: “When we speak to people with mental health problems, it’s often for those very reasons that people really rely on cash often.

“So it means that it is easier to make sure that you don’t overspend, and for some conditions in particular that’s really important, particularly for people with bipolar, say, overspending is a big risk.

“And we’ve heard some really sad stories of how people have gone from having a decent pot of savings or being in a good financial position to spending huge amounts of money in a very short time.

“And while cash isn’t the solution for every single problem, it’s not that every single person with a mental health problem relies on cash, for some people it can be a really useful tool to help them stay in control.”

The committee is exploring the barriers some consumers may face if they rely on cash to be able to access certain services.

Ron Delnevo, chairman at the Payment Choice Alliance, told the hearing: “I know some older friends who’ve stopped going to certain places… because they couldn’t park without having an app.

“They don’t have apps, they don’t have smartphones.

“So we’ve seen parking massively affected, we’ve seen on-train catering… we’ve seen universities, we’ve seen leisure facilities… theatres… and many of these organisations are supported by the government or local authorities.”

He said restrictions on cash acceptance also affect tourism, adding: “How is that good for the reputation of Britain, that cash isn’t accepted?”

In 2023, legislation was passed as part of the Financial Services and Markets Act to protect access to cash.