Post Office handles more cash as banks close and prices rise Published
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Image source, Post Office Post Office branches handled increased amounts of cash in August, a trend it expects to continue, as banks close branches and the cost of living bites.
The Post Office handled £3.45bn in cash in August, the highest total since it began recording the metric five years ago.
September would have been even higher without the extra bank holiday for the Queen’s funeral, it said.
The total for September was slightly lower at £3.35bn.
The cash transactions include personal deposits and withdrawals from post office accounts, as well as business use.
People typically use less cash in August, the the state-owned company said, but this year branches dealt with record-breaking amounts of cash.
“We expect cash transactions to continue to exceed expectations in October and for the rest of the year,” said Martin Kearsley, banking director at the Post Office.
People relied on the11,500 local Post Office branches around the country, he added, “as the only ones able to fulfil all the cash needs of their local communities and businesses”.
Banks have been closing branches across the UK, leaving some communities with no access to banking services at all.
As part of efforts to ensure individuals and businesses can still access banking services, the Post Office is running pilots of shared banking hubs in two locations, with another 13 locations also earmarked for hubs.
Customers of most banks can already use post office counters for basic banking, but at the hubs there is a wider range of services and the banks taking part send representatives once a week to help customers.
New shared banking hubs to open in 13 more places Decline in cash use eases after pandemic slump Six tips for cutting home energy bills this winter But while the Post Office is processing more cash transactions in the short term, over the longer-term, the trend away from cash is set to continue, with UK Finance, the body representing the banking industry, forecasting cash will account for only 6% of payments by 2031.
The use of notes and coins has already fallen dramatically over the last decade, from 55% of payments in 2011 to 15% last year.
During the worst of the pandemic all transactions fell, but cash use dropped particularly sharply as shopkeepers preferred contactless methods.
The rising cost of living is prompting some people to return to using cash, the Post Office said.Some people say they find it easier to monitor their spending by using physical notes and coins, rather than electronic payments.
The Post Office said personal cash withdrawals at its branches totalled £805m in August, up 0.5% compared to July, while personal cash deposits exceeded £1.4bn for the first time.
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