It has been revealed that around £50 billion in cash is missing in the UK, despite the use of bank notes halving since around 2010.
The most commonly used notes are £10 and £20 notes.
The national audit office says no one actually knows why there are so many missing notes, or why the demand for cash has been rising for a while now, despite use halving. It may be worth checking around your house for money – because £50 billion missing is equivalent to around £1,000 per person in the UK.
Some realistic theories, unlike ones that suggest everyone has lost a grand somehow, include people keeping their money in cash due to saving rates being low, and trust in banks being lost.
Other theories include ones that concern criminals. Cash is mostly off the books; it doesn’t leave much of a trail so it’s the way most deals will probably be made in the criminal underworld. Tax evaders and more sophisticated criminals could have also taken some money abroad, to hide it from the government.
It’s also obvious to point out that many notes will have simply been destroyed or lost by people, which could amount to more than we realise!
The National Audit Office has also criticised the BOE for a lack of knowledge over where their money has gone.
They said in a report: “The Bank, working with other public authorities, should improve its understanding of both the factors that are driving the increase in demand for notes, and also who is holding the approximately £50 billion worth of notes where there is currently a lack of information.
“This work might help inform wider policy, for example on tax evasion.”
If around 1 in 20 of the lost notes can be recovered, that would be around £80 per person in the country, which isn’t that much of a stretch. Including coins, we probably have lost around £80 of cash, each, in our lifetime.
What’s even more strange is that this comes as the use of cash is at its lowest usage ever, after the decline was heavily accelerated by the coronavirus pandemic, and people not wanting to handle notes with their hands.
It’s doubtful even half the lost cash will be found, because it is likely lost or in the hands of criminals, but the Bank of England needs to gain a clearer understanding of where it’s gone – if at all possible.
