Cash Makes a Splash Ahead of UK Summer Holidays

Cash transactions across the UK’s Post Office network have reached an eight-month high ahead of summer holidays, continuing an upward trend begun in 2022.

The Post Office—which partners with banks across Britain to allow customers access to their accounts and cash at its branches—reported £3.33 billion-worth of cash transactions in May, marking their highest level since last September when they peaked at £3.35 billion. Personal withdrawals were up 7.5 percent month-on-month to £817 million. Business and personal deposits totalled £2.48 billion, marking a 10 percent month-on-month rise.

This continues a trend started last year, with major UK building society Nationwide noting cash withdrawals from its ATMs had risen for the first time in 13 years, reaching £30.2 million, a 19 percent increase over 2021.

In August last year, we reported on the likelihood that the resurgence of cash in Britain may be related to people seeking better ways to manage budgets stretched by a deepening economic crisis. Natalie Ceeney, Chair of the Cash Action Group, noted that a decline in cash use accelerated by the pandemic was reversing as new generations discover the value of physical money for budgeting and reducing frivolous spending.

With summer holidays around the corner for Brits, cash can also be helpful in getting the most out of a vacation budget. News site newschainonline advises withdrawing local currency—or even having pounds and pence on hand for a staycation—to keep track of spending, avoid surprise transaction fees, and make a budget last the full duration of a trip.