Cost of living crises in UK!
Personal cash withdrawls from Uk’s post office jumped 8% in July to $967 million. It is believed that more people are now relying on cash to help stay on budget as the cost of living crises in UK increases.
Since the pandemic and with the advancement in technology, many people across the world had forgone bank notes and coins in favor of contactless and digital payments. But things are changing again in Britain now. Shopkeepers in the UK say they are noticing that more people want to use cash again.
One of the Butcher Manager in UK, “I find it’s a wee bit 50 50 just now. Last year we hate the pandemic, it was lot of card but the last kind of six date month, people are coming back to cash”
According to UK’s Post office, which offers banking services as well as mail, more people are using cash to manage their spending as prices rise. Post Offices handled $967 million in personal cash withdrawals in July, i.e. up by 8% month on month.
As per the banking director at post office, Martin Kearsley, It shows increasing reliance on cash for those in the nation who rely on cash everyday for their budgeting.
Last week, the bank of England announced its biggest interest rate increase in 27 years. It forecasted that the war in Ukraine would fuel further inflation and tip the UK economy into a prolonged recession. Consumer prices rose 9.4% this year through June up from 9.1% the previous month.
According to the Office for National Statistics on one high street North lanarkshire, shoppers say they prefer to use cash.
“If you’ve got the money in front of you and you can see it, it’s much easier to control it. We’ve all been guilty of tapping cards and not quite watching what’s gone out”
Analysis by a consumer Association found that almost half of UK’s bank branches have closed since 2015. Despite the decline in the number of bank branches across the UK, ATMs are still available. A record $4 billion in cash deposits and withdrawls were handled at post offices, 11,500 branches in July.
So could the UK see more households reverting back to cash as the cost of living deepens?