Resilience of the Cash System to a Pandemic

Cash is a very resilient payment mechanism, circulating readily between customers and retailers across the length and breadth of the UK.  With tens of thousands of cash machines, thousands of branches of banks and building societies, and thousands of Post Offices, convenient access to withdraw or deposit cash is normally assured.

The amount of cash in circulation is usually around £3½ bn of coin, around £45bn of Bank of England notes and a further £4 bn in Scottish or Northern Ireland banknotes.  The issuers of currency have resilient systems and facilities, as well as plentiful reserves of banknotes ready to be issued.  It is not plausible that the UK could run out of cash.

However, the cash systems that provide convenient ways for people and businesses to withdraw and deposit cash might be disrupted if there were a major unforeseen event.  For example, a serious flu pandemic is likely to have the following consequences:
 

• Demand for cash for spending will fall, particularly around the peak of a pandemic, as some people will stay at home rather than going about their normal routine
• Demand for cash for hoarding might increase, particularly in the initial stages of a pandemic, if people mistakenly think there will be a shortage of cash
• Financial institutions will encourage customers with debit cards to use them more for shopping and for cashback
• Staff levels for cash transport, and for cash sorting, are likely to be impacted by a pandemic
• People and businesses wishing to withdraw or deposit cash from a branch may, around the peak of a pandemic, have to travel further than usual if the staff in the local branch are affected by flu
• People wishing to withdraw cash from an ATM may, around the peak of a pandemic, have to travel further than usual if the refilling or repair of the ATM has been affected by shortages of skilled staff

The cash sector understands the reliance that people have on cash.  Sound plans and a Code of Conduct are in place to sustain an adequately convenient cash system, for people and businesses, even during a serious pandemic.  A serious pandemic could be difficult for everybody; the cash sector should be an asset, not a liability, at such a time.

UK Cash Industry Pandemic Code of Conduct (PDF 117kb)

Pandemic Plan for UK Cash Industry (136 kb)

Organisations supporting the Code of Conduct for the UK Cash Industry during a pandemic
 

Organisations supporting the Code of Conduct for the UK Cash Industry during a pandemic

Public bodies which have given written support