Yahoo Finance UK households ‘counting pennies’ as living costs soar
UK households are “literally” counting the pennies as they go back to cash in a bid to keep tighter control on their spending amid a cost of living crisis.
Post offices handled a record £801m in personal cash withdrawals in July, marking an increase of nearly 8% month on month.
People are "literally counting the pennies" as they grapple with rising prices, Natalie Ceeney, chair of the Cash Action Group, told the BBC.
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"It's absolutely because of the cost of living crisis,” she said. "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'.
In the cost of living crisis, many consumers have cited using cash as a way of helping them budget.
In total, a record £3.32bn in cash deposits and withdrawals was handled at the Post Office’s 11,500 branches across the UK.
In the cost of living crisis, many consumers have cited using cash as a way of helping them budget.
Martin Kearsley, banking director at the Post Office, 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.
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Previous research last month found that 71% of people plan on going on holiday in the UK this year plan to take out cash before leaving to go on holiday.
Personal cash deposits totalled £1.35bn, up 2% month on month, while business cash deposits totalled £1.13bn, up by 1.9% month on month.
In July, the Post Office also processed more than 600,000 cash payouts for people eligible to receive energy bill support from the government.
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