THE UK IS USING MORE CASH THAN EVER!

No wonder the Bank of England are prepared to invest in the design of banknotes - why wouldn’t they keep such a popular and relevant product fresh and interesting?

In 2015, the Bank reported that there were £60 billion of banknotes in circulation.

In 2025, this amount has jumped to £86 billion.

Thats an increase of 43%, despite the slow down during the pandemic.

Of course, if you are busily closing branches and removing ATMs, it is convenient to focus of the role of cash in payments and argue that the availability of other payment methods means that there needs to be a reconsideration of the role of cash in society.

However convenient, this is utter nonsense.

Back in 1960, when almost everyone was paid weekly in cash, there was only £2 billion of banknotes circulating in the UK.

In 1960, the population of the UK was 52.4 million. Today, 65 years later, this has increased by 33% to 69.5 million.

Meantime, the value of cash in circulation has increased around 35 fold. UK price inflation is running at around 30 fold since 1960.

So the value of cash in circulation since 1960 has significantly exceeded inflation, despite all the competitors to cash that have emerged in the payments sector.

Because, of course, cash isn’t only used for payments. It is also a means of exchange and a very important store of value.

What does all this mean?

THAT THE UK IS USING - FOR VARIOUS REASONS - MORE CASH THAN EVER!

If anyone had suggested to the British public in 1960 that the UK should become a “cashless” society, 100% would have doubted the sanity of the questioner.

All these years later, that figures continues to stand at over 80%.

In short, there is absolutely zero need to reconsider the position of cash in the UK.

The British public continue to make clear what they want - and it is NOT “cashless”.

What does NEED to happen is that that there is an economically viable model for the long term future of the cash services the British public continue to WANT, which includes face-to-face community services.

And that economic model will emerge, during the coming months.

Those who argue against it will lose, so the British public can win.

NOW. IN 2025.

Source: bankofengland.co.uk/banknotes/help-us-design-our-next-series-of-banknotes