Cash Spending Gains Ground as Brits Budget

The number of UK adults using cash for their daily expenses has reached a four year high as rising numbers of Brits turn to the tangibility of notes and coins to manage tight budgets.

Research conducted by UK Finance found 1.5 million adults predominantly used cash in 2023, up from 0.9 million in 2022, 1.1 million in 2021 and 1.2 million in 2020. Overall, cash remains the nation’s second most popular payment method (with debit cards top) and accounted for 12 percent of all payments in 2023.

Adrian Buckle, Head of Research at UK Finance, says the rise in people reporting cash-only spending ‘is likely to be a reflection of the use of cash to manage a limited budget’.

The figures continue a rise in popularity for cash first noted in the UK early last year, when data showed overall cash use had risen for the first time in over a decade. In May this year, figures from the Post Office Network—a major provider of banking services as branches and ATMs continue to close nationwide—showed both cash deposits and withdrawals had hit new highs ‘in an ongoing trend of rapid growth’.

Support for access to cash has also come from the Financial Conduct Authority, which introduced rules on 18 September placing greater responsibility on banks and building societies to provide fair access to services across the UK and plug the ‘significant gaps’ currently existing.

The Economic Secretary to the Treasury has welcomed the development, recognising the importance of cash for ‘millions of people and businesses’ and reiterating the Treasury’s commitment to ensuring fair access to cash and banking services.