Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Cost of living: People turning back to cash as prices rise

Cost of living: People turning back to cash as prices rise

People are going back to cash to keep tighter control on their spending as living costs soar, according to new research by the Post Office.

Post offices handled £801m in personal cash withdrawals in July, the most since records began five years ago.

That's up more than 20% from a year earlier.

Natalie Ceeney, chair of the Cash Action Group, said it showed people are "literally counting the pennies" as they grapple with rising prices.

"It's absolutely because of the cost of living crisis," said Ms Ceeney, who chaired the government's independent Access to Cash review.

"People will be taking out cash and physically putting it into pots, saying 'this is what I have for bills, this is what I have for food, and this is what's left'."

Prices are currently rising faster than they have for 40 years.

The increase in the cost of living is putting a squeeze on people's finances, as incomes fail to keep up.

In total, £3.32bn in cash was deposited and withdrawn at Post Office counters in July, £100m higher than in June.

Personal cash withdrawals, at £801m, were up almost 8% month-on-month and up more than 20% year-on-year.

It is the highest amount since records began five years ago, and only the second time that personal cash withdrawals have exceeded £800m. The last time was December 2021, and there's always an increase in withdrawals around that time of year, the Post Office said.

The Post Office put the extra volume of withdrawals at its 11,500 branches down to more people turning to cash to help manage their budgets on a week-by-week and often a day-by-day basis.

It also said it was partly due to more people choosing to have staycations, with recent research by the Post Office finding that 71% of Brits planning on going on holiday in the UK this year intended to take out cash before leaving.

Martin Kearsley, banking director at the Post Office, said: "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."

Cash deposits also rose, according to the research.

Individuals deposited £1.35bn in cash in July, up 2% month-on-month, while cash deposits for businesses totalled £1.13bn, up 1.9% from a month earlier.

Kearsley said the figures showed Britain is "anything but a cashless society".

Counting the pennies


Ms Ceeney told the BBC that it was easy to see why cash use was going up, given the rising cost of living.

"Cash has been in decline for well over a decade, the pandemic accelerated this, but now it's going back up, and that's absolutely because of the cost of living crisis," she said.

"It helps people budget, as using cash means you literally can count the pennies. We all know that if you pay with a card, it's so easy to spend money you don't have and then go overdrawn.

"If you've only got £30 to last you the week, holding that in notes and coins is still the most effective way of budgeting and controlling how much you spend."

Salford University student Kira Hayward turned to social media for inspiration to help her cope with rising costs by taking cash out of her bank account.

She puts it in different labelled envelopes to ensure she has money for food and bills.

"I went on Instagram and YouTube and I saw these physical budget binders," she told the BBC in May. "I take the money out of the bank and I budget for things like my shopping. If I know I have £80 in my personal shopping for the month I know I can't go over that."

With more high street banks closing branches, Ms Ceeley said there's a need for post offices and shared banking services to allow people to get the cash that they need, especially for vulnerable or elderly people or those who don't have access to digital banking.

"The reality is digital doesn't work for everyone," she said.

"Millions of people don't have access to computers or smartphones, and so we need to keep cash viable."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Japanese Customer Sways from VW to BYD after “Unbelievable” Test Drive amid Dealership Expansion
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Pickles are the latest craze among Generation Z in the United States.
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
×