£50 note rise due to 'tough times'

03/11/2008

More and more £50 notes are entering circulation - thanks to the credit crunch.

According to an investigation from the BBC, the number of notes currently being used by consumers is up 20 per cent over last year.

G4S, the firm which transports nine in ten banknotes in the UK, told the broadcaster that risk-averse people preferring to make big payments by cash was responsible for the trend.

Many consumers have been worried recently about the financial stability of banks - as the credit crunch has forced the government to spend billions on shoring up their balance sheets.

Nick Buckles, chief executive of G4S, commented: "Although the retail take [of £50 notes] is going down, there's more switching on to cash payments, so our processing of cash is picking up in terms of volume.

"What we've seen over cycles before is that cash in circulation increases during tougher times."

In a bid to boost confidence in the financial system, the government recently announced that savings guarantee limits would increase from £35,000 to £50,000.

Tags; Debt Management and Banking, Young Family Finances, Recent Graduate Debt,

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