Post Office Cash Withdrawals Surpass £1 Billion Monthly for First Time
Ross Borkett, the banking director at the Post Office, emphasized the importance of cash in managing daily budgets for millions of people.
Setting a new record, the Post Office witnessed over £1 billion in cash withdrawals in one month.
In December, the company reported £979 million in personal cash withdrawals and £35 million in business cash withdrawals, totaling just over £1.01 billion.
The previous record, set in December 2023, saw cash deposits and withdrawals totaling £962.8 million.
Overall, cash deposits and withdrawals for the previous month amounted to £3.7 billion in transactions.
Collaborating with over 30 banks, building societies, and credit unions, the Post Office provides banking services for customers at their branches.
Notably, 99 percent of UK bank customers can access their accounts at a Post Office.
Reliance on Cash
Ross Borkett reiterated that the figures demonstrate the continued reliance on cash for everyday budget management.
He highlighted the significant cash withdrawals made leading up to Christmas, illustrating the essential need for people to withdraw the exact amount of cash they require at Post Office branches.
Borkett noted that locally withdrawn cash is often spent locally, supporting high street businesses.
Cash Use on the Rise
Last month, the British Retail Consortium reported an increase in cash usage for the second consecutive year, underscoring the continued importance of physical currency as a payment method.
In 2023, 19.9 percent of transactions utilized cash, up from 18.8 percent in 2022. Card payments remained dominant, constituting over 75 percent of transactions and 85 percent of spending.
Chris Owen, BRC payments policy adviser, attributed the rise in cash usage to persistent inflation and the ongoing cost of living crisis affecting households across the country.
File photo of a person withdrawing money from an ATM on Sept. 14, 2017. PA Wire/PA Images
Campaigners advocating for the financial inclusion of vulnerable groups stress the importance of maintaining cash accessibility.
In December, the Treasury Committee heard from Age UK that older individuals who do not manage money online find cashless payments challenging.
Ron Delnevo, chairman of the Payments Choice Alliance, highlighted issues faced by seniors in adapting to app-based services.
Cash Discouraged
While large retailers commit to accepting cash, there has been an observed trend in businesses discouraging or rejecting cash payments.
Research by LINK, the UK’s main ATM network, revealed a 22 percent increase in adults encountering places that refused or discouraged cash payments.
Parking emerged as the most common service rejecting cash, followed by cafes, restaurants, pubs, and public transport.
Graham Mott, LINK’s strategy director, emphasized the need for debate on addressing the dependence on cash alongside the growing risk of digital exclusion.
