Record breaking first quarter for Post Office as branches handle nearly 40 million cash transactions

• UK households look to control budgets in the face of the rising cost of living driving significant increase in transactions.
• Growth primarily driven by business and personal deposits, which rose 6% year on year, pointing to continued demand for local cash and banking services in communities.
• Businesses continue to rely on Post Office branches for everyday cash services, with business cash withdrawals rising 3% and deposits increasing 2% year on year.

New quarterly Post Office Cash Tracker data shows nearly 40 million (39.8m) cash transactions (withdrawals and deposits) were made at Post Office branches in the first three months of 2026, up by nearly one million transactions (900,000), an increase of 2% year on year. This marks the highest first quarter on record as households and businesses continued to rely on cash and turned to Post Office branches for everyday cash services

Between January and March this year, deposit volumes for business and personal customers rose 6% compared with Q1 2025, while the total value of cash withdrawals increased 6%, showing continued demand for everyday cash services at Post Office branches.

Over the same period, the value of personal cash withdrawals rose 6% and deposits increased 10% year on year, suggesting customers were using Post Office branches for higher-value transactions as they managed household budgets more closely. A particularly strong March performance was driven by households preparing for Easter and the school break, with holiday-related spending, travel and cash withdrawals likely to have contributed to that uplift, alongside continued cost of living pressures shaping how people budget and spend.

This is further reflected in the average value of a personal cash withdrawal, which reached £139 in the first three months of 2026, up 7% compared with the same quarter last year, while the average value of a personal cash deposit increased 2% to £297. Together, the figures suggest households are continuing to use cash in a deliberate way, with the added cost of the Easter period and household costs, including energy bills, travel and fuel, likely to have increased demand for cash as a budgeting tool.

Business cash activity remained resilient in Q1 2026, with value of cash withdrawals rising 3% and deposits increasing 2% year on year, and the average transaction value increasing 2%. Transaction volumes were in line with the same period last year, showing cash continues to play a dependable role for many businesses managing takings, cash flow and regular banking needs through their local branch.

These latest figures mark the strongest start to any year on record for cash activity at Post Office branches and reflect the important role the network continues to play in communities, supporting people and businesses with everyday banking and cash services close to home.

That national picture is reflected in communities like Storth, where local residents and businesses rely on their local branch.

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. 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."

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."