Post Office Branches Handled £3bn in Cash Last Month, the Highest Ever

Post Office branches handled more than £3 billion in cash in November, the highest amount to ever pass over its counters in its 360-year history, showing both the continued importance of cash to many small businesses and consumers and the impact of high street bank branch closures.

In total, £3.01 billion in cash was deposited and withdrawn over the Post Office’s 11,500 counters by personal and business customers last month.

That includes the withdrawal of £743 million in cash by personal customers, up 7% from October and the highest figure yet. The previous peak was in December 2019, when personal customers withdrew £707 million in cash.

Additionally, businesses deposited £1.04 billion in cash over Post Office counters last month, up 4% month-on-month. 

Business cash deposits at Post Office counters have exceeded £1 billion every month since June 2021, rising despite the wariness of some businesses and consumers about cash during the pandemic. A recent survey by the Post Office found that nearly half (44%) of small hospitality and leisure businesses still rely on cash day to day.

With many bank branches permanently shuttered—including 736 this year alone—Post Office counters have become one of the only places these businesses can conveniently deposit cash takings. The Post Office has an agreement with most major banks that allows their customers to do everyday bank tasks, including deposits and withdrawals, at its counters.

Martin Kearsley, banking director at Post Office, said: “Each month comes news of further bank branch closures and, in many communities across the country, Post Office is already the last counter in town.”

Post Office branches are also open long hours and at weekends, when many bank branches are closed and when many hospitality and leisure businesses need to make deposits.

With further bank closures planned—220 closures have already been announced for 2022—Post Offices have been mooted as an important alternative, alongside shared banking hubs, for businesses and consumers who need access to cash.

To safeguard consumers’ access to cash, legislation passed in the spring allows people to withdraw up to £50 from retailers’ tills without making a purchase. Already live in 1,000 retailers, it will be extended to more than 2,000 shops by the end of the year.

However, retailers have warned that the service will increase businesses’ need for cash and mean that more than ever they need convenient places to deposit and withdraw notes and coins.

Meanwhile, consumers who use Post Office card accounts to receive benefit payments will need to find an alternative account. HMRC originally intended to cease paying tax credit, child benefit, and guardians allowance payments into Post Office card accounts by 30 November 2021. Around 137,000 customers provided new bank account details before this deadline. But the 13,000 who haven’t yet opened a new account will be able to continue receiving payments from HMRC into Post Office card accounts until 5 April 2022. They are, however, urged to open a bank, building or credit union account and to provide HMRC with these details as soon as possible.

Those who use Post Office card accounts to receive state pension payments from the Department for Work and Pensions (DWP) are also urged to find an alternative bank account but they have until November 2022 to make the change.