Britain is going cashless too quickly, a report has warned, meaning elderly and disabled consumers face being excluded from shops and restaurants.

A major review looking at the future of UK payments found millions of consumers could be left behind by the digital revolution, as cash use is predicted to halve over the next decade.

The report, compiled by a consortium of payments experts, warned that the UK could soon face similar problems to Sweden where large numbers of shops are starting to refuse to take cash because it no longer makes economic sense.

In Sweden, where just 15 per cent of payments are made in cash, the Government has issued leaflets to consumers suggesting they hold cash in their homes in case of emergencies, and could soon issue card imprinters to all retailers in case payments networks go down.

The report warns that the UK, where 34 per cent of payments are cash, is following in Sweden's footsteps.