The UK Government has confirmed that revised daily cash withdrawal limits for customers aged 60 and over will take effect from 18 January 2026. The change will apply across UK-regulated banks, building societies and Post Office counter services.

The policy, developed in coordination with major banks and overseen within the regulatory framework of the Financial Conduct Authority, is designed to reduce fraud targeting older people. Ministers say the update is protective, not restrictive, and will not affect State Pension or benefit payments.

From the start date, eligible customers will see updated daily cash caps automatically applied to their accounts. No application is required.

Why the Government Is Introducing New Safeguards

Fraud involving large cash withdrawals has risen in recent years, particularly where scammers pressure victims to withdraw substantial sums quickly. Industry reviews found a disproportionate number of high-value cash losses involved customers aged 60 or above.

Under the new framework, banks will introduce structured limits intended to:

• Slow down unusually large withdrawals
• Allow staff to intervene where fraud is suspected
• Encourage safer payment alternatives when appropriate

Officials stress that access to cash remains protected under UK law. The policy introduces additional checks rather than banning withdrawals.

Who the New Withdrawal Limits Apply To

The revised rules apply to customers who:

• Are aged 60 or over
• Hold a personal current or savings account
• Bank with a UK-regulated bank or building society
• Withdraw cash via ATMs, bank branches or Post Office counters

The limits do not apply to:

• Business accounts
• Accounts held solely by under-18s
• Certain specialist financial products

For joint accounts, the age of the primary account holder determines whether the limits apply.

When the New Rules Start

The updated withdrawal limits take effect from:

• 18 January 2026

From that date:

• Banks and building societies will apply new caps automatically
• Post Office cash services will follow the same structure
• No separate registration or opt-in is required

Customers will typically receive advance communication from their provider before implementation.

How the New Daily Withdrawal Limits Will Work

While exact figures may vary between providers, the overall framework includes:

• A lower standard daily ATM withdrawal cap
• A maximum total daily withdrawal limit
• Additional verification for higher sums
• Temporary limit increases available in branch

Banks have confirmed that multiple smaller withdrawals per day will remain possible — provided the daily total is not exceeded.

If a customer attempts to withdraw above the permitted amount at an ATM, the transaction may be declined and they may be advised to visit a branch.

In-Branch Withdrawals and Additional Checks

Customers will still be able to withdraw larger sums in person. However, staff may conduct additional checks, including:

• Asking the reason for the withdrawal
• Verifying identification
• Discussing safer alternatives such as bank transfers

These checks are intended to prevent scam-related losses rather than delay legitimate access.

Impact on Post Office Banking Services

Many older customers, particularly in rural areas, rely on Post Office counter services for everyday banking.

Under the new policy:

• Post Office withdrawals will mirror bank-set daily limits
• Identity verification may apply for larger amounts
• Staff are trained to recognise potential scam scenarios

Access to face-to-face cash services will continue nationwide.

Effect on State Pension and Benefit Payments

The changes do not affect payment amounts or schedules for:

• State Pension
• Universal Credit
• Pension Credit
• Other DWP-administered benefits

Funds will continue to be paid into bank accounts as normal. However, customers who usually withdraw large lump sums in cash may need to:

• Spread withdrawals over multiple days, or
• Use electronic transfer options for high-value payments

Can You Increase Your Withdrawal Limit?

Yes, banks may allow temporary or permanent increases where appropriate.

Customers typically must:

• Make the request in person
• Provide a genuine reason
• Complete security checks

Examples may include home improvements, vehicle purchases or emergency expenses. Policies differ by provider.

Why the Policy Matters Across the UK

The change applies across England, Scotland, Wales and Northern Ireland.

For households that rely heavily on cash budgeting, particularly pensioners managing fixed incomes, the adjustment may require minor planning changes. However, the Government argues the financial protection benefit outweighs inconvenience.

The policy forms part of a broader strategy to reduce authorised push payment scams and cash-based fraud losses.

What Over-60s Should Do Now

If you are aged 60 or over:

• Check your bank’s updated withdrawal policy
• Plan ahead for large cash needs
• Contact your bank if you regularly withdraw high amounts
• Stay alert to scam warning signs

Official information will be published via bank communications and GOV.UK channels. Customers unsure about their limits should contact their bank directly.

Practical Scam Prevention Guidance

Authorities continue to advise:

• Never withdraw money under pressure
• Banks or police will never ask you to move money urgently
• Take time to verify unexpected requests
• Speak to a trusted family member if unsure

These measures remain key to preventing financial loss.

Will the Limits Be Reviewed?

The Government has confirmed the policy will be reviewed after implementation. Feedback from banks, consumer groups and customers will inform any future adjustments.

No further changes have been announced at this stage.

FAQs

When do the new cash withdrawal limits start?

They begin on 18 January 2026 and will be applied automatically by banks and Post Offices.

Who qualifies for the new limits?

UK residents aged 60 or over with personal bank or building society accounts.

How much can I withdraw per day?

Exact limits vary by bank, but a revised lower daily cap will apply, with branch approval required for higher amounts.

Are State Pension or DWP benefits affected?

No. Payment amounts and schedules remain unchanged.

Do I need to apply for the new system?

No. The changes will be implemented automatically.

Can I increase my withdrawal limit?

Yes, in many cases. You must request it in person and complete security checks.

Is this confirmed government policy?

Yes. The Government has confirmed implementation from 18 January 2026.