A record $970 million
British citizens withdrew £801 million from United Kingdom Post Office ATMs in July, a record since 2017, when such statistics began to be kept. Experts attribute this primarily to the rising cost of living, broadcaster CNBC reported on Monday, citing a report from the UK Post Office.
It said the amount was 20 per cent higher than the same period last year, when residents in the kingdom withdrew £665 million from postal ATMs.
"People are increasingly relying on cash and see it as a proven way to manage their budgets," says the director of the UK Postal Service. "In the run-up to the expected deepening economic crisis in the autumn, access to cash is crucial," he added.
According to the Cash Action Group chairman, being able to physically count cash helps people save money, while the use of credit cards, on the other hand, increases the likelihood of going into debt.
"Firstly, more people are using cash when they go on holiday, and secondly, the post office has helped hand out cash support to energy consumers, and thirdly, people are using it as a method of budgeting," said Laura Suter, head of finance at AJ Bell.
Inflation in the United Kingdom rose to an annual rate of 9.4 per cent in June, the highest in 40 years.
Moreover, it is worth noting that according to the Bank of England, inflation in the country could exceed 13 per cent by the fourth quarter and remain at a high level for the next year. Within two years, the figure should fall to the target two per cent. To cope with the situation, the regulator has taken the unprecedented step of sharply raising the rate by 50 basis points at once to 1.75 percent per annum.