industry focus
Cash was king over Christmas as cost-of-living bites
Cash withdrawals at the Post Office increased by nearly seven per cent during the festive period, as consumers look to budget during the winter.
December marked another record month for cash with the number of over-the-counter withdrawals jumping to £892 million from £835 million in November.
Cash withdrawals were up by 11 per cent compared to the same period of 2021.
Post Office figures, which come as the UK faces soaring energy prices and inflation, show that the business handled £3.3 billion in cash deposits and withdrawals during the month.
Last year more than £38 billion worth of cash was deposited and withdrawn across the Post Office's 11,500 branches compared to just over £32 billion the year before.
“Millions of people continue to visit their local Post Office to withdraw cash in order to budget and Postmasters are playing a vital role in helping people, particularly those on low incomes, navigate this Winter," said Martin Kearsley, banking director, Post Office. "In addition to cash deposit and withdrawal services, Postmasters are processing tens of thousands of Energy Bill Support Scheme vouchers for prepaid meter customers every week."
But Post Office data showed for the third month running that business cash deposits are on the decline. The organisation attributed this to rail strikes, cold weather, and the newly introduced deposit limits launched by some banks to tighten money laundering controls.
Overall, business cash deposits reached £1.09 billion in December – a decline of two per cent compared to the previous month – which also saw the value of deposits drop.
November, which traditionally sees large increases in business cash deposits as companies take advantage of the run-up to Christmas, was the first time since the beginning of 2022 that personal cash deposits had fallen for two successive months.
