Rising living costs in the UK are making more people go back to cash payments, according to new figures released by the Post Office.

Post offices around the country handled a record £801m in personal cash withdrawals during July.

Personal cash withdrawals were up by almost 8% month-on-month when the total reached £744m in June, and up by over 20% year-on-year, when compared to £665m in July last year. In terms of personal cash deposits, this figure totalled £1.35bn in July, which was up 2% on June’s figure of £1.33bn.

In total, more than £3.31bn in cash was deposited and withdrawn over Post Office counters in July, the first time that figures have crossed the £3.3bn threshold in the Post Office’s 360-year history. The figure was also £100m higher than in June, when it stood £3.21bn.

Post Office attributed the record amount for personal cash withdrawals at its 11,500 branches to people increasingly turning to cash to manage their budget on a week-by-week basis, and often on a day-by-day basis, as living costs continue to rise. More people choosing to have holidays in the UK was also cited as a reason for the rise of cash payments.

Banking director at Post Office, Martin Kearsley, said: “Our latest figures clearly show that Britain is anything but a cashless society. 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. Postmasters handling over £3.3bn in a single month demonstrates just how vital being able to deposit and withdraw cash, securely and conveniently, is for millions of people.”

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