State pensioners born before 1960 are leading a surge in cash withdrawals, according to new data from the Post Office. The Post Office Cash Tracker reveals that nearly 40 million cash transactions were made at branches in the first three months of 2026, an increase of 900,000 compared to the same period last year.
Record cash usage
This marks the highest first quarter on record, as households and businesses continue to rely on physical money. Retirees receiving the state pension from the Department for Work and Pensions (DWP) have been identified as a key driver of this trend.
Maggie Roberts, Postmaster at Storth Post Office in Cumbria, said: "Cash and banking services make up around 75% of my business and they are extremely important for the Storth community. Many of our customers rely on us to be able to withdraw cash, pay in money and deposit cheques closer to home. Around 60% of the village are retirees and they do not want to travel that far, so services offered by a Post Office really matter."
Businesses also benefit
Roberts added: "We also see lots of local businesses, as well as community venues and churches, paying in their takings here, which shows how important the branch is to the wider village too."
The average value of a personal cash withdrawal reached £139 in the first quarter of 2026, up 7% year-on-year. Meanwhile, the average value of a personal cash deposit increased 2% to £297.
Ben Hunter Woollard, Head of Banking at Post Office, said: "These record-breaking figures show how important Post Office branches remain for millions of people and businesses across the UK who want convenient, secure access to cash services on their doorsteps. For households, being able to withdraw and deposit cash at their local Post Office can be a simple way to stay on top of spending, manage budgets and handle everyday finances with confidence, particularly when family budgets are under pressure. For businesses, especially smaller firms, being able to deposit takings and access cash locally remains a practical part of day-to-day trading."
Post Office branches continue to play an important role in communities by providing access to the cash services people and businesses still rely on.
