The Post Office processed a record £3.7bn of cash transactions in July, surpassing previous highs of May, April and December, as bank branch closures continue at an inexorable pace.
Since 2015, more than 6,000 bank branches have closed in the UK, an average of around 50 closures per month. In response, banking hubs have been slowly but surely introduced, with around 70 currently operational and 100 expected by Christmas. These hubs aim to maintain access to cash for the public and give small businesses a place to deposit money. However, as hubs and post offices can only offer basic banking services, the ongoing branch closures remain a contentious issue.
Mairi Wingate, who has been postmistress in Barton-upon-Humber for 19 years, insists that many of her clients find cash useful when budgeting. “People use cash for everything from getting their hair done with £10 to managing their weekly shopping and bills with £300 or £400. They know exactly what they have and can’t spend too much.”
Despite the post office’s reputation being tarnished by the Horizon IT scandal – in which hundreds of postmasters and postmistresses were wrongly accused of theft – footfall at its branches has remained stable, with around 10 million visits per week. The Post Office’s presence on the High Street provides an essential alternative for communities affected by bank closures.
John, a regular at the Post Office, emphasizes the enduring value of cash. “I took out £50 to go shopping, as I have done for the last fifty years. Cash is still king in my book. I have cards, but rarely use them. With cash in your pocket you know exactly where you stand.”