Royal Mail PLC (LSE:RMG) post offices saw record cash withdrawals in July as households grapple with the cost-of-living crisis.
Hard up Brits are reverting to cash – with £801mln in personal withdrawals seen last month, the most since records began five years ago.
This was up 20% year-on-year and 8% month-on-month, according to new Post Office research.
People are “literally counting the pennies,” as they try to fight 40-year high inflation of 9.4%, which has been tipped to reach 13% by the Bank of England.
"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,'” Natalie Ceeney, Cash Action Group chairperson, said.
More people are managing budgets on a daily or weekly basis and these are part of the reason for higher withdrawal volumes, the Post Office believes.
Martin Kearsley, banking director at the Post Office, said: "We're seeing more and more people increasingly reliant on cash as the tried and tested way to manage a budget.