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Why millions in the UK are stashing cash ‘under the mattress' again
Why millions in the UK are stashing cash 'under the mattress' again
There is more cash than normal in circulation right now according to the Bank of England and this is the reason why
People are said to be hoarding cash in the UK
(Image: PA )
Households across the UK are said to have been hoarding physical cash amidst escalating economic uncertainty and worries over power outages.
The Bank of England's chief cashier, Victoria Cleland, has observed a surge in people creating a financial buffer, just as they did during the Covid and cost-of-living crises.
She revealed that there had been a noticeable climb in the amount of banknotes in circulation recently. She said: "At a time of uncertainty, at a time of crisis, people do move to cash. They want to make sure they have literally got something under the mattress."
Cleland pointed out that even in the UK, there could be situations where payment networks failed, and cash was the only solution. Nevertheless, Cleland noted that while consumers desired the availability of cash, it was not always actively used by them.
Payment methods other than cash are likely to be used more over the years, according to the Bank of England
(Image: KALA STUDIO via Getty Images )
"Even in the UK, there will be times where networks are down and you can only be paying in cash," said Cleland, adding that people wanted cash "to be there but they're not necessarily using it". For money-saving tips, sign up to our Money newsletter here
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Last year Ron Delnevo, chair of the Payment Choice Alliance, a campaign group that works for the long-term future of cash services, was critical of retailers refusing cash payments, reports Birmingham Live.
Delnevo said it was "completely unacceptable" that certain stores were rejecting cash.
"The vast majority of the public want cash to be honoured as a payment," he declared. "These businesses are letting down the public."
Labour MP for Jarrow and Gateshead East, Kate Osborne, who backed an early day motion, emphasised: "It is a fundamental right that people should be able to use cash as a legal tender.
"When you are trying to budget, particularly if you are on a low income, cash is a simple way of doing it.
"I understand that many people are not using cash much of the time, but there should be choice for all.
"We are seeing more and more retailers offering card-only payments, and it causes problems in constituencies like mine where we've got a high number of people who are digitally excluded or may choose not to do electronic banking."
In the coming years, the Bank of England has suggested that alternative digital payment methods will likely become increasingly accepted and utilised.
Indeed, as early as 2017, debit cards surpassed cash as the most frequently used payment method in the UK.
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