People 'turn back' to cash after lockdown

Signs of a return to cash use by people and businesses were seen in August as people ventured out to pubs and back to work, according to new figures.

Business customers deposited £831m with the Post Office – up by 3.1% on July – in April when stricter coronavirus lockdown measures were in place, £313m was deposited by businesses.

Meanwhile, £945m was deposited in cash by personal customers at Post Office counters - a 16.3% increase compared with the same month a year earlier.

The Post Office said this reflects people depositing cash built up during the lockdown period, at a time when many banks have been operating reduced opening hours.

The report said that everyday banking services in the Post Office normally tend to be used less in August, compared with other months and that the high deposit levels in August indicate a continued reliance on cash.

Nick Read, chief executive at the Post Office, said: "Our data shows that businesses and customers continue to rely on their local Post Office as the destination where they can deposit cash.

M art inKearsley, director of banking at the Post Office, said: "There are definitely encouraging signs of a return to the use and importance of cash following the significant lockdown dip.

"We are seeing a monthon-month growth in business cash deposits since the start of lockdown as people return to work and venture out to our shops, pubs and restaurants and leisure and tourism attractions."