Post offices saw a fall in business cash deposits in December, attributed to last month’s rail strikes, freezing weather, and ongoing bank deposit limits impacting the hospitality sector.
Business cash deposits totalled £1.09bn in December, a fall of 2% month-on-month, according to Post Office’s latest Cash Tracker data.
Post Office also attributed the fall in business cash deposits to newly introduced deposit limits that some banks have set as part of a tightening of money laundering controls, which has resulted in limits on the amount of cash that some customers can deposit over the counter at post offices.
Meanwhile, personal cash deposits totalled £1.28bn in December, dipping 0.5% month-on-month.
In total, Post Offices handled £2.37bn worth of deposits in December, down 1.2% month-on-month.
Martin Kearsley, Banking Director at Post Office, said: “December was a torrid month for the hospitality sector amongst others, with strikes and freezing weather reducing footfall and cash takings across pubs, cafes and restaurants especially; and in turn contributing to a fall in deposits at post offices.
“Small businesses are the backbone of the British economy. Over-zealous limits imposed on the amount they are able to deposit is resulting in more businesses no longer being able to accept cash, impacting both their ability to trade as they would like, as well as their customers who need or choose to budget using cash. They must remain able to deposit their takings locally, securely and conveniently without having to suspend or disrupt trading to make an ever longer journey to a distant bank branch to deposit their takings.”
Post Office data also revelas that personal cash withdrawals increased 7.6% month-on-month to reach a record £892m in December.
Kearsley added: “Millions of people continue to visit their local post office to withdraw cash in order to budget and Postmasters are playing a vital role in helping people, particularly those on low incomes, navigate this winter. In addition to cash deposit and withdrawal services, postmasters are processing tens of thousands of Energy Bill Support Scheme vouchers for prepaid meter customers every week.”
In total, £38.4bn worth of cash was deposited and withdrawn at Post Office’s 11,500 branches in 2022, compared to £32.1bn in 2021.
