People are taking out more money when they visit ATMs, with the average amount climbing more than £10 to just under £80 in the last two years.

But they’re using cash machines 40% less than before and withdrawing £44 a month less.

Withdrawals are now nearly £100m less a day than in 2019, said cash machine network Link.

“Covid has turbocharged the switch to digital,” said Nick Quin, head of financial inclusion at the network.

Before the pandemic, each adult in the UK visited a cash machine on average three times a month, taking out on average £66.99. That amount has climbed to £78.54.

However, 18 months after the coronavirus crisis started, visits are now less than twice a month.

That means the total average amount each month withdrawn per person has fallen £44, from £200.97 to £157.08.

UK residents are hoarding an estimated £50m in loose change, with little sign of it all being spent as Covid restrictions ease.

Nearly six in 10 people are holding coins at home, according to a survey by banking trade body UK Finance.

People tend to hold on to 1p, 2p, 5p and 10p coins.

The findings have prompted pleas for this money to be given to charity, as cash donations dropped during the Covid crisis.

UK Finance data suggests that people have been holding on to cash three times longer than they used to owing, in part, to the coronavirus lockdowns.

Eight locations across the UK have been chosen to test solutions that will help communities retain free access to cash, as the nation shifts to an increasingly cashless society.

The launch of the pilots follows the publication of the 2019 Access to Cash Review, which found that 17% of the UK population rely on cash, with vulnerable communities, including the poor and those in rural areas, at particular risk from reduced access to cash.

The Covid-19 pandemic has further heightened the problem, with many high street businesses spurning cash payments in favour of contactless transactions.

Natalie Ceeney, who led the Access to Cash review and is now in charge of the pilot projects, says: “The world is changing – we can’t just magic back our old bank branch and ATM infrastructure. Instead, we need to use innovation to develop new solutions as well as harness tried and tested approaches to meet people’s needs.”

The aim of the pilot schemes is to create new approaches to current challenges, which include helping local shops to give cashback, introducing shared bank branches, subsidising bus services to surviving branches, and the opening of local cash deposit centres for merchants.

Stephen Jones, CEO of UK Finance, says: “While our latest data shows that people are increasingly choosing to pay digitally, the banking and finance industry is committed to ensuring that access to cash remains free and widely accessible to those who need it.

“The impact of the Covid-19 lockdown in recent months has shown the importance of continuing to do so, and with retailers and businesses reopening their stores this week the sector is playing a central role in helping people to pay for the goods and services they need using the method of their choice.”