Overview

• Bank of England chief cashier Victoria Cleland said households are building cash pots similar to those in the Covid and cost of living crises to protect against possible banking outages.
• The value of banknotes in circulation has risen 23% since before the pandemic even as cash accounted for just 12% of all transactions in 2023.
• High-street banks and building societies have seen rising customer demand for notes, with Nationwide reporting a 10% increase in ATM withdrawals in 2024 compared with 2023.
• Some retailers are refusing to accept banknotes and coins, prompting the Payment Choice Alliance and Labour MPs to call for legislation protecting the legal tender status of cash.
• Consumer groups warn that reduced cash acceptance risks leaving elderly, disabled, and low-income individuals without a reliable payment option for budgeting or emergencies.