New data published this week by LINK, the UK’s cash access and ATM network, showed that consumers withdrew £79.5 billion from cash machines in 2024, a 1.2 per cent reduction compared to 2023.
In total, adults over the age of 16 made 915 million cash withdrawals last year, 60 million (6.1%) fewer than in 2023. This equates to approximately 16 trips to the ATM per person, with an average withdrawal of £86 each time, totalling £1,424 over the year.
ATMs account for 93 per cent of all cash withdrawals in the UK, ahead of cashback and counter transactions at bank branches, post offices, and banking hubs.
Regional differences
Since the pandemic, with more people opting for contactless and digital payments, cash and ATM usage has declined significantly. However, cash remains popular, with regular LINK research showing around 75 per cent of adults using cash at least once a fortnight. While people are visiting ATMs less frequently, they are withdrawing more cash per visit.
The data reveals that every region and nation across the UK saw a fall in total cash withdrawals, with the largest declines in Scotland and London. Interestingly, the North-East of England and Wales experienced small increases in the total value of cash withdrawn.
Northern Ireland remains the most cash-heavy part of the UK, with banking customers withdrawing an average of £2,274 in 2024. The second and third most cash-heavy regions were Yorkshire and the Humber (£1,696) and the North-East (£1,682). Yorkshire was the only region where the average withdrawal increased, rising just over 2 per cent from £1,658. ATM usage was lowest in the South-West, where the average customer withdrew £1,030, closely followed by the South-East (£1,030).
ATM numbers
As cash use continues its long-term decline, the number of ATMs has also fallen. By the end of 2024, there were 5 per cent fewer cash machines compared to the end of 2023 (48,401 vs 46,182). Of these, 37,361 are free-to-use, down from 38,480, and 8,821 are charging ATMs, down from 9,921.
LINK noted that it has multiple financial inclusion programmes in place, as well as a statutory obligation, to ensure everyone has good free access to cash. An unchanged 9 in 10 people still live within 1km of a free cash access point, such as an ATM, post office, or banking hub.
In 2024, the Financial Conduct Authority (FCA) introduced new rules to protect access to cash across the UK. These rules include measures requiring LINK to independently assess the needs of a location following the closure of a bank branch. Communities can also request LINK to assess their high street if they believe it lacks appropriate cash services.
To date, LINK has recommended 184 banking hubs and over 100 deposit services to support cash in the community. These are being delivered by Cash Access UK, which opened the 100th banking hub in late 2024.
“Cash usage is falling in line with our own expectations as more people choose to shop online or pay with card. However, cash remains popular for many reasons,” Graham Mott, director of strategy at LINK, said.
“Our own research shows that millions still rely on it because they’re not confident, able, or can afford to use digital payments. For those on low budgets, there’s still no better alternative to managing your finances than using notes and coins. Notwithstanding, as we saw last year during the CrowdStrike IT issues, if and when systems go down, cash is quite often the only option.
“LINK’s job is to protect access to cash, which means that even as cash and ATM use falls, we will continue to ensure that every street is protected. We’re also pleased that we have recommended almost 200 banking hubs, allowing people and businesses that rely on cash to be able to readily access and deposit cash.”
Small businesses are "18 times less likely" to offer an apprenticeship scheme as compared to large businesses, a recent report has claimed, adding that some small businesses are not taking proactive steps to recruit apprentices from lower socioeconomic backgrounds.
Co-op in a report released on Monday (10) points out how more than a third (38 per cent) of school leavers face a lack of apprenticeship opportunities in their local area.
Co-op finds that two in three (68 per cent) school leavers agree that apprenticeships are more important now than in previous years, with almost half (48 per cent) seeing an apprenticeship as the most beneficial way of entering the world of work.
However, despite those from lower socioeconomic backgrounds being more likely to apply for an apprenticeship (73 per cent v 66 per cent), many are facing barriers to accessing apprenticeships.
Co-op’s research also included a survey of business leaders, which found that seven in ten agree that a socioeconomic gap exists when it comes to hiring apprentices. It also finds that small businesses are 18 times less likely to offer an apprenticeship scheme compared to large businesses.
Amongst those that do, one in five small businesses are not taking proactive steps to recruit apprentices from lower socioeconomic backgrounds.
The top reasons for this lack of proactive recruitment include: a lack of time and resources (38 per cent), uncertainty about how to access diverse talent pools (33 per cent), insufficient funding to support apprenticeship programmes (29 per cent), and concerns over increased training costs (14 per cent).
Furthermore, businesses in less advantaged areas lack higher level apprenticeship schemes, with only a quarter (26 per cent) of business leaders in these areas offering level six or seven apprenticeships, states the report.
Claire Costello, Co-op’s Chief People and Inclusion Officer, says, “The research paints a picture of the real and widespread relationship between an individual’s socioeconomic background and their unequal access to apprenticeship opportunities post-school.
"There has never been a more important time for the Government and UK businesses to stand up to reality and do more to ensure access to apprenticeships is fair and equitable for all young people.
"Someone’s background should not limit their career potential which is why we’re calling on an amendment to the IfATE Bill - to level the playing field so everyone can have a fair shot at reaching their full potential.”
The research comes as Co-op has written to the Education Secretary calling on the Government to give Skills England a statutory duty to improve social mobility across the country.
January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, shows industry report released today (11).
According to retail body British Retail Consortium (BRC), UK total retail sales increased by 2.6 per cent year on year in January, against a growth of 1.2 per cent in January 2024. This was above the 3-month average growth of 1.1 per cent and above the 12-month average growth of 0.8 per cent.
Food sales increased by 2.8 per cent year on year in January, against a growth of 6.1 per cent in January 2024. This was above the 3-month average growth of 2.3 per cent and below the 12-month average growth of 3 per cent, shows BRC report.
Commenting on the figures, Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, “January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, albeit on a weak comparable.
"Consumers headed to the shops to refresh their homes for the year ahead, taking advantage of big discounts on furniture, bedding and other home accessories.
"With growth across nearly all categories, only toys and baby equipment remained in decline. While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month. This was also helped by the earlier start of the reporting period, adding a few more post-Christmas shopping days into the mix.
“Whether this strong performance can hold out for the coming months is yet to be seen. Inflationary pressures are rising, compounded by £7bn of new costs facing retailers, including higher employer national insurance contributions, higher National Living Wage, and a new packaging levy.
"Many businesses will be left with little choice but to increase prices, and cut investment in jobs and stores. Government can mitigate this by ensuring its proposed business rates reforms do not result in any shop paying more in business rates.”
Commenting on food and drink sector performance, Sarah Bradbury, CEO of IGD, said, "The current climate of economic uncertainty is reflected in IGD’s January shopper confidence index, which has declined by 3 points.
"With unemployment at 4.4 per cent (+0.4 per cent vs this time last year), shoppers have responded by employing strategies to control their spend.
"The notable increase in volume over value sales suggests a shift towards private label products and a change in purchasing categories, as shoppers anticipate further price rises for food and drink.”
High streets need to optimise for midweek office workers as Brits return to office, as shown by latest data on footfall, suggesting areas of focus for retailers such as extending trading hours in the evening and paying attention on grab-and-go meals.
According to the latest data from retail tech specialist MRI Software, retail footfall bucked seasonal trends in January, rising +1.4 per cent year on year across all UK retail destinations,
This marks the first annual increase in January footfall since 2016 (+1.2 per cent), outside of the pandemic period, suggesting that a stronger return to office work is driving retail visits as businesses push employees back to in-person work.
As expected, post-holiday footfall dropped sharply month on month, falling by almost -20 per cent across all UK retail destinations.
The decline was most pronounced in the second week of January, coinciding with schools and offices reopening, exacerbated by heavy snowfall and widespread travel disruptions.
High streets bore the steepest decline, with footfall plunging -22.4 per cent from December to January, followed by shopping centres at -21.7 per cent, while retail parks fared slightly better with a -16.5 per cent decline.
However, the shift back to office-based work was evident throughout January.
Weekday footfall rose by +1.6 per cent year on year, while weekend footfall dropped by -3.5 per cent, underscoring the growing weekday retail opportunity.
MRI Software’s Central London Back to Office benchmark showed a +1.4 per cent annual footfall increase, largely driven by a +4.4 per cent uplift during early evening hours (17:00-20:00). The trend suggests that after-work activity is picking up, offering retailers an opportunity to tap into office workers' midweek spending habits.
Data from MRI Software’s Consumer Pulse report reveals that evening shopping (post-5PM) is now the most common time for office workers to visit retail destinations, with 34 per cent preferring to shop after work.
Tuesdays, Wednesdays, and Thursdays see the highest overlap between office attendance and retail activity, with 58 per cent of respondents working in the office on Tuesdays and aligning shopping trips for midweek convenience.
Additionally, 31 per cent of respondents reported visiting high streets during lunch hours—more than any other retail destination—highlighting the importance of proximity and convenience for office workers on their break.
Sales of low and no-alcohol beer were 20 per cent higher in December than January, shows recent data, suggesting that traditionally the month of abstinence has been overtaken by December in terms of alcohol consumption.
According to a recent report in The Times, supermarket Tesco experienced record demand for alcohol-free beverages in the four weeks running up to Christmas with sales up by more than 15 per cent on the previous year. The demand was largely driven by young Brits.
According to David Albon, a beer and cider buyer at Tesco, quite contrary to five years ago when the main demand for no and low drinks came in ‘dry January’, it is now a trend, especially in young people, to moderate drinking at these key occasions of the year as well.
“It’s a very different picture to what we were seeing, even just five years ago, when the main demand for no and low drinks came in ‘dry January’.”
Tesco confirmed that interest in dry January is still growing, with demand for no and low-alcohol wine particularly strong during the month and sales up 15 per cent. Sales of alcohol-free beer were up 10 per cent and alcohol-free spirits up 5 per cent.
Among the most popular choices from the chain in January were 12-packs of Corona 0.0%, with demand up by more than 250 per cent ,and 10-packs of Guinness 0.0, up by more than 100 per cent.
Tesco says the nation’s changing relationship with booze is seeing sales of alcohol-free drinks increase across every month of the year. It added that the increasing quality of low and no-alcohol alternatives was encouraging consumers to buy in multi-pack sizes rather than single bottles or cans.
Another trend giving momentum to alcohol-free range is "zebra stripping", when people alternate between alcoholic and non-alcoholic drinks on a celebratory night in order not to get too drunk.
In the words of Sarah Holland, a buyer at Waitrose, 2024 has certainly been the year of zebra striping, driven by the wonderful variety of delicious no and low which are available on the market now.
This comes weeks after IWSR data reported similar picture.
The firm stated that the total UK no and low market is expected to have more than doubled in 2024 versus 2023. Preliminary data shows no-alcohol beer grew 20 per cent in 2024 vs 2023 while alcohol-free beer now accounts for more than 2 per cent of total beverage alcohol market sales in the UK, highlighting just how big a part the subcategory is beginning to play in the overall drinks sector.
IWSR added that growth of no-alcohol spirits has slowed, but is expected to have grown +7 per cent in 2024 vs 2023 while sales of low-alcohol wine fell -5 per cent in 2024 vs 2023, no-alcohol wine grew by +8 per cent.
Cost of living is still consumers’ number one concern, shows recent data, highlighting how shoppers are turning to scratch cooking to both save money and have a healthier diet.
According to new data released today byNielsenIQ (NIQ), total till sales grew at UK supermarkets (+5.3 per cent) in the last four weeks ending 27th January 2025, up from +3.6 per cent recorded in December.
With a better outlook on food inflation (+1.6 per cent) compared to last year (+6.4 per cent), there was good unit growth of +0.9 per cent at the Grocery Multiples. However, growth slowed after the new year.
January is typically a time of year for a healthy reset for consumers, and NIQ data shows 12 per cent of British households purchased meat-free substitutes in the last four weeks. Whilst this is a small drop from 14 per cent last year, shoppers have not cut back on healthy diets with double-digit growth in freshly prepared fruit (+16 per cent) and fresh veg accompaniments which grew by +9 per cent.
Meat, fish and poultry was the fastest growing super category (+9.1per cent) as shoppers sought to cook protein-rich meals as part of New Year diets. This was followed by pet care (+8.3 per cent) and dairy products (+6.8 per cent).
In addition, NIQ data shows that half of all UK households now say they cook from scratch every day or most days, with around 16 per cent doing so more due to the rising cost of living.
The impact of this shift in behaviour marks a spike in demand for easy hacks to speed up or elevate the dining experience, with a boost in sales for fresh gravy (+28 per cent), fresh dough and pastry (+18 per cent), fresh dips (+15 per cent) and fresh cream and custard (+14 per cent).
In terms of retailer performance, Ocado led with a sales growth of +15.6 per cent compared with the same period last year.
This was followed by Marks & Spencer (+9.7 per cent) helped by its bigger store formats motivating shoppers to add more items to their baskets as well as its dine-at-home deals. There was also continued growth at the discounters Lidl (+7.8 per cent) and Aldi (+3.8 per cent) with both retailers gaining new shoppers and more store visits.
Mike Watkins, Head of Retailer and Business Insight at NIQ said, “The lift to grocery sales in the last four weeks was helped by the timing of the New Year, with a proportion of sales coming from the new year festivities which was week ending 4th January (+10.0 per cent).
"However, after this, weekly growth in January was slightly lower. Whilst overall Total Till sales growth was higher than December, the underlying trend is closer to +3 per cent which is the average growth in the most recent three weeks.”
Watkins adds, “NIQ Homescan data shows that the cost of living is still firmly consumers’ number one concern at the start of 2025. Shoppers are looking to save money and eat healthier leading to a growing trend in scratch cooking, which is one of the key behaviours driving the strong unit growth (+2 per cent) and value growth (+6.8 per cent) in fresh food categories in the last four weeks.”