Cash withdrawals topped £1billion at post offices in December, marking the first time on record that this has happened in a single month.
The Post Office recorded £979million worth of personal cash withdrawals in December and £35million worth of business cash withdrawals.
Ross Borkett, Post Office banking director, said: “Our figures demonstrate that millions of people clearly still rely on cash to manage their budget on a day-to-day basis.”
The previous record for cash withdrawals was set in December 2023, with £962.8million withdrawn across personal and business accounts.
In December 2024, cash deposits and withdrawals over Post Office counters reached a staggering £3.7billion.
On Christmas Day alone, over £3.7million in cash was withdrawn or deposited over the counter at 1,300 branches that remained open.
Through agreements with many banks, the Post Office allows customers to carry out everyday banking over its counters, helping to fill gaps left by widespread bank branch closures.
Mr Borkett said: “We saw significant amounts of cash withdrawn every day in the run-up to Christmas Day, highlighting just how vital it is for people to be able to withdraw the amount of cash that they need, to the penny if they require, at our branches.
“It’s testament to the hard work of postmasters and their staff that over a billion pounds was withdrawn over the counter in a single month. They keep their branches open long hours, with many open at weekends.
“We know that where cash is withdrawn locally it tends to be spent locally, demonstrating the vital role postmasters play in keeping local high streets going and attracting footfall which benefits other nearby retailers too.”
Caroline Abrahams, charity director at Age UK, told Express.co.uk: “Physical spaces – whether a bank or building society branch, Banking Hub, or alternative suitable provision – must continue to exist so people can still carry out face-to-face tasks such as withdrawing and depositing cash, applying for a loan, arranging third party access to their account or starting bereavement proceedings.
“The disappearance of face-to-face banking risks cutting a significant minority of the older population out of an essential service, making it difficult if not impossible for them to manage their money and maintain their independence.”
Age UK has been campaigning for the protection of physical banking services for those who do not, or cannot bank online.
The charity is also calling for an accelerated roll-out of shared banking hubs in areas where bank branches are rapidly disappearing.
Ms Abrahams added: “Our research found that more than 4 million older people with a bank account in Britain are not managing their money online and so are at high risk of digital exclusion.”
