People turning back to cash during cost of living crisis
New figures have shown that people are increasingly turning back to cash as they look to control their spending during the cost of living crisis.
The Post Office has revealed that personal cash withdrawals at its post offices rose by almost 8% month-on-month to a record £801 million in July. In total, over £3.3 billion in cash was deposited and withdrawn over post office counters to mark the first time figures have crossed the £3.3 billion threshold in the Post Office’s 360-year history.
The Post Office has attributed the record amount for personal cash withdrawals at its 11,500 branches to more people choosing staycations in the UK as well as to consumers turning to cash to manage their budgets on a weekly or even daily basis.
Its research last month found that 71% of Brits who are going on holiday in the UK this year plan to take out cash before leaving. Of those who had a staycation in the last five years, almost a third admitted to being caught out cashless whilst on holiday in the UK.
Martin Kearsley, banking director at the Post Office, said: “Our latest figures clearly show that Britain is anything but a cashless society. We’re seeing more and more people increasingly reliant on cash as the tried and tested way to manage a budget. Whether that’s for a staycation in the UK or if it’s to help prepare for financial pressures expected in the autumn, cash access in every community is critical.”
