As many as 10 million people in the UK would struggle to cope in a cashless society despite just 17% of payments being made without a card, it has been revealed.

According to a new report by the Royal Society of Arts (RSA), funded by cash machine network Link, 19% of Brits say they wouldn't be able to get by without the use of notes or coins.

Almost half (48%) of those surveyed believe going cashless would be problematic for them, while three in 10 (29%) thought it would be a major inconvenience.

The survey polled a total of 3,000 people in Britain, as well as focus groups and interviews.

Read more: Cost of living crisis: Low-income households set to lose £850 of spare cash

It comes as the COVID-19 pandemic sped up the shift to digital cash alternatives, with some shops refusing notes and coins to stop the spread of the virus, and more people shopping online.

There was also an initial significant fall in cash machine withdrawals during the health crisis, however, researchers said that cash remains helpful for budgeting for those on low incomes, as well as the elderly.

An estimated 15 million people used cash to budget, which is becoming vital as the UK faces its biggest cost of living squeeze in 60 years.

The areas with the smallest dips in cash machine withdrawals during the pandemic tended to be the most deprived. The constituencies of Liverpool Walton and Bradford South had the smallest decline in cash withdrawals, and were among the most deprived, it said.

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Between the first lockdown in March 2020 to May 2021, UK towns lost as many as 530 bank branches, according to Which?.

Since January 2015, banks and building societies have closed almost 5,000 branches, equating to around 54 branch closures each month.

The report added that cash users in rural and remote locations were worried that poor broadband and mobile connectivity will make it harder for them to go fully digital.

The RSA called on the government to introduce legislation, overseen by the Financial Conduct Authority (FCA), to ensure everyone can continue to access cash near to where they work and live and to protect the commercial cash system.

“It’s vital that the dash to digital doesn’t disenfranchise anyone, especially with the cost-of-living crisis putting such significant strain on family finances right now,” Mark Hall of the RSA said.

Read more: Cost of living crisis: UK shop prices rise at highest rate since 2011

John Howells, chief executive at Link, said: “People are increasingly using less cash and embracing contactless and digital payments.

“However, it’s clear that digital does not currently work for everyone and for those living on tight budgets, where every penny counts, there is no better alternative to notes and coins, and they are in no rush to turn to money management tools.

“We are pleased to see that the government has committed to introduce legislation to protect access to cash, but it’s vital we have this now.”

Watch: How to save money on low income