Post Office Sees 10 Percent Increase in Personal Cash Deposits Compared to Last Year
Post Office Banking Director Ross Borkett emphasized that the ability to access and budget using cash remains crucial for many individuals on a daily basis. Cash access and usage are deemed essential, with £1.57 billion in personal cash deposits handled by the Post Office in January, marking a 10 percent increase from the previous year.
The figures, released by the Post Office, revealed a 2.7 percent rise in personal cash deposits in January compared to December 2024 when the deposits amounted to £1.52 billion. Furthermore, although personal cash withdrawals dropped by 15 percent from a record high in December to £828 million, they still increased nearly 6.5 percent year-on-year.
Post Office Banking Director Ross Borkett reiterated that “Being able to access and budget with cash remains vital for millions of people every day, particularly in the New Year after a busy Christmas period.”
“Many postmasters went to extraordinary lengths to keep their branches open and serving customers during the bad weather in January, and that’s reflected in our figures with over £3.5 billion handled by postmasters and their teams last month,” Borkett added.
6,000 Bank Branches Closed
The Post Office’s increased engagement with the public for their banking needs comes at a time when the number of high street banks is declining. A consumer advocacy group reported that 6,266 branches have closed since January 2015, at a rate of nearly two closures per day.
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Major banks have agreed to fund community shared banking hubs to ensure continued access for people and businesses through Cash Access UK.
In September, new rules from the Financial Conduct Authority came into force allowing people to request an assessment of cash access in their area. If a significant gap is found, new services will be introduced, such as installing an ATM, establishing a banking hub, or introducing counter services for banking at existing Post Offices.
As of January 2025, Cash Access UK has opened 106 hubs in partnership with the Post Office, which plays a growing role in offering banking services.
The Post Office Banking Framework also enables personal and business customers from various banks, building societies, and credit unions to withdraw and deposit cash and cheques, and check their balance at 11,500 Post Office branches across the UK.
More Banking Hubs Needed
The government has committed to opening 350 banking hubs by the end of this parliament in 2029.
Ron Delnevo, chairman of the Payment Choice Alliance, emphasized that while banking hubs are a step forward, they do not provide a complete solution. He estimated that at least 1,200 banking hubs are needed to adequately cover the UK.
Delnevo stressed the importance of local businesses having access to cash for their operations and the need to deposit their earnings to continue accepting cash, thus keeping the circulation of cash within local communities.
“Those banking hubs would give businesses an opportunity to deposit cash. But at the moment, with the bank branches disappearing, it’s often a 15 to 20-mile round trip for businesses to conveniently deposit cash,” he stated.
A selection of UK bank notes and pound coins, in an undated file photo. Dominic Lipinski/PA
Delnevo also pointed out that many Post Offices, despite offering banking services, have limited hours and are not open on Saturday afternoons.
Acceptance of Cash Inquiry
In November, the Treasury Committee initiated an inquiry into whether mandating the acceptance of physical cash is necessary.
In December, several experts highlighted the importance of cash for various groups, including the disabled, survivors of economic abuse, businesses, and local markets.
Delnevo emphasized that cash access is a multi-generational concern, noting that Generation Z is increasingly turning to cash for budgeting and privacy reasons. Cash also remains crucial for national resilience, such as during power outages or system hacks.
Last week, Gareth Thomas, the parliamentary under-secretary of state for business and trade, expressed the need for the banking industry to collaborate with the government to enhance access to financial services, especially for small businesses.
Thomas informed the House of Commons that the government is closely working with banks to establish 350 banking hubs to provide essential cash and banking services within local communities. He also mentioned the government’s goal of ensuring 99 percent of the population lives within three miles of a Post Office, now playing a significant role in offering basic banking services.
