Dash for cash accelerates as record sums are withdrawn in rush to stock up for crisis

Savers are heeding ministers’ advice to hoard more banknotes in case of widespread disruption from emergencies.

The latest figures from Link, which connects the national network of 40,000 cash machines, show the amounts being withdrawn are running at record levels on some days.

‘We’re definitely seeing more people take out an extra bit of cash when they do visit an ATM, with averages approaching £110,’ said Graham Mott, Link’s director of strategy. Typically, people take about £90 when they withdraw cash.

Under the Government’s ‘Be Ready’ campaign, ministers are urging every household to stockpile three days’ essentials to cope with a crisis caused by war, cyber attacks or a natural disaster.

Sales of bottled water, loo rolls and wind-up radios have soared since the alert was issued last month, with online retailer Ocado temporarily running out of some tinned soups.

The public also seem to be taking on board official advice to have notes and coins on hand in case electronic payment systems or cash machines fail.

The total amount of cash withdrawn in the week to November 2 hit £1.53billion, which was £16million higher than the same period last year when there were 1.5million more transactions.

Getting cash: The total amount of cash withdrawn in the week to November 2 hit £1.53bn

Cash machine usage has dwindled in recent years. 

The volume of ATM transactions fell to 1.3 billion last year, down from 3.2billion a decade ago, as people switched to paying with contactless cards or via mobile phones.

The number of ATM machines has also slumped from more than 70,000 over the same period as banks shut thousands of branches. 

But £76billion in cash was still taken in 832million withdrawals last year, while a recent Link survey found 61 per cent of people had used an ATM in the past fortnight, with the heaviest users in rural areas and among the elderly.

‘Long term, cash and ATM use is declining,’ said Mott. ‘But we do know from our research that people like to use cash for budgeting, and notes and coins are tactile.

‘Cash may not be king for everyone, but it’s an important part of a healthy, resilient payment system.’ 

The dash for cash comes after Defence Secretary Wes Streeting said the public’s response had been ‘encouraging’ since he sounded the alarm last month.

He said he had begun stockpiling tins, bottles of water and other essentials weeks ago, adding: ‘I am trying to lead by example.’

But Lord Hannan, head of the Institute of Economic Affairs, said: ‘Britain is not a country on the brink of catastrophe. The last thing we need is a Government encouraging people to panic.’

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