Consumers still reliant on cash and credit cards

Despite rising credit card use a new survey has found cash is still king for the UK consumer.

A study conducted by Alliance & Leicester found that small and medium-sized firms in the UK handle £28 billion of cash every month.

"Our survey results explode the myth that cash transactions are about loose change," explained the head of cash marketing at Alliance & Leicester Commercial Bank, Russell Carter.

"It is crucial to realise the importance of the humble coin and note when such a high proportion of cash transactions in the UK involves sums of more than £80."

People are most likely to use cash when paying for goods from the entertainment industry, with two-thirds of transactions involving sums greater than £80.

Unsurprisingly perhaps a different survey conducted by the post office found that while over 50 per cent of population like to pay for transactions under £10 in cash, youngsters are most likely to reach for their credit cards.