How much emergency cash should you keep at home? UK government advice explained

Britons are withdrawing more cash after the government encouraged households to prepare for emergencies, including power cuts and payment system outages. But how much should you actually have at home? Here's what the official guidance says, how much cash experts suggest and how to prepare without stretching your budget.

When was the last time you paid for something with actual cash?

For plenty of us, it's become second nature to tap a card or phone without giving it a second thought. But what happens if the technology we rely on stops working?

That's the question behind the government's Be Ready campaign, which encourages households to keep a small supply of cash alongside other essentials in case of disruption.

And it appears people are taking the message seriously.

Recent reports suggest cash withdrawals have increased, with LINK, the organisation behind the UK's main cash machine network, reporting that average withdrawals have approached £110 on some days.

But before you empty your current account and start hiding £20 notes around the house, it's worth understanding what the advice actually means.

The government isn't telling everyone to withdraw hundreds of pounds. Its guidance is about having enough money to cover essential purchases if card payments or cash machines temporarily stop working.

Here's how to work out a sensible amount for your household.

How much emergency cash should you keep at home in the UK?

The government hasn't set a fixed amount of emergency cash that every household should keep at home. It recommends having a mixture of notes and coins available in case electronic payments or cash machines are disrupted.

The amount you need will depend on your household size and what you might reasonably need to buy during an emergency.

However, LINK has suggested keeping approximately:

• £50 for each adult

• £25 for each child

That means a single adult could consider £50, while a family of two adults and two children could consider £150.

These are suggested amounts from LINK, not legal requirements or official government cash limits.

And they're not an instruction to withdraw money you can't afford to spare.

If £50 is a significant part of your weekly budget, keeping a smaller amount of accessible cash may be more realistic.

The aim is to have a useful backup, not create another financial pressure.

Why is the government telling people to keep cash at home?

The government's Be Ready campaign encourages households to prepare for disruptions that could affect essential services.

These might include:

• Power cuts that stop card machines from working.

• Internet or telecommunications outages.

• Cyber incidents affecting payment systems.

• Severe weather that disrupts travel or access to shops.

• Problems accessing cash machines or online banking.

Most everyday payments now rely on technology working as expected.

If a supermarket's card readers stopped working, for example, having some cash could give you another way to pay for food or other essentials, assuming the shop is still open and accepting cash.

The government also recommends preparing enough basic food, drinking water and other essentials to help households manage for at least three days.

But this is about being prepared for disruption, not predicting that a particular emergency is about to happen.

How much emergency cash would a family need?

LINK's suggested amounts provide a starting point, but the right figure depends on your circumstances.

For example:

• One adult: Around £50.

• Two adults: Around £100.

• One adult and two children: Around £100.

• Two adults and two children: Around £150.

• Two adults and three children: Around £175.

If you're working out what to keep, consider the essentials you might need to buy if electronic payments were unavailable for a short period.

That could include food, medication, essential travel or other urgent household purchases.

You may need less if you already have suitable supplies at home.

And if you're managing a tight budget, there is nothing wrong with building up a small amount gradually.

Do you really need £100 or £200 in cash?

Not necessarily. A suggested emergency cash amount isn't the same as a minimum requirement.

For someone living alone with limited disposable income, £20 or £30 in mixed notes and coins might be a more achievable starting point.

The most useful amount is one you can afford to keep aside without falling short on rent, bills, food or other essential spending. You can gradually build it up when your circumstances allow.

Why are people withdrawing more cash?

Reports in early November 2026 suggest some people have been withdrawing larger amounts following the government's preparedness advice.

According to LINK, average cash withdrawals have approached £110 on some days, compared with a more typical figure of around £90.

Research published by LINK in October also found that just 17% of respondents said they already kept a stash of emergency cash at home.

The organisation has encouraged households to consider keeping a modest amount available in case they cannot access electronic payments.

However, there's an important distinction between being prepared and panic-buying or withdrawing large sums.

LINK has said the cash machine network remains well stocked, with billions of pounds normally withdrawn through it each week.

There's no reason to assume that cash machines are about to stop working simply because the government is encouraging people to prepare.

Is cash kept at home covered by insurance?

Yes, cash kept at home may be covered by your home contents insurance, although most policies have limits on how much they'll pay out.

MoneyHelper recommends looking for a policy that covers at least £500 of cash kept at home against theft or damage.

However, some insurers have lower limits, and you may need to meet certain security conditions or provide evidence of how much money you were keeping.

Your policy excess will also apply, which could make claiming for a relatively small amount of cash less worthwhile.

Before withdrawing a large sum, check your contents insurance policy for its cash cover limit, exclusions and excess. Remember that money kept at home doesn't benefit from the same FSCS protection as eligible savings held in a bank account.

What happens if card payments stop working?

If an electronic payment system is unavailable, you may find that some shops, petrol stations or other businesses cannot accept cards or mobile payments.

Cash could provide an alternative, but only where a business is open, able to process transactions and willing to accept it.

Not every shop will necessarily be able to trade during a major power cut.

That's one reason the government's emergency checklist also recommends keeping basic supplies at home.

If electronic payments stop working:

• Check whether the problem is limited to one shop or payment provider.

• Try another payment method if it's available and safe.

• Use emergency cash for essential purchases rather than withdrawing or spending more than necessary.

• Follow official updates from your bank, payment provider or relevant authorities.

• Avoid suspicious texts or links claiming you need to move money because of a national payment outage.

Be particularly cautious about messages asking you to transfer money to a supposedly safe account. A genuine bank won't ask you to move your savings to another account to protect them from a payment system problem.

What else should be in a three-day emergency kit?

The government recommends having enough essential supplies to help your household manage for at least 72 hours.

Its checklist includes:

Drinking water

Aim for at least three litres of drinking water per person per day, with additional water where needed for cooking and washing.

Food you can store

Choose non-perishable foods that your household would normally eat.

Tinned foods, dried foods and other long-life essentials can be useful, particularly if they don't require refrigeration or cooking.

A torch and spare batteries

A battery-powered torch is generally safer than relying on candles during a power cut.

A charged power bank

A power bank can help keep your phone working if the electricity supply is interrupted.

Essential medication and supplies

Think about any medicines, hygiene products, baby essentials or other items your household relies on.

Emergency cash and important information

Keep a modest amount of cash, along with important telephone numbers and information you may need if your phone or internet connection stops working.

You don't need to buy everything in one expensive shopping trip.

Start with what you already have, identify the gaps and gradually build up your supplies.

How can you prepare for an emergency on a budget?

Preparing for disruption doesn't need to become another costly household project.

If money is tight, focus on small, practical steps that won't make your finances harder to manage.

Start with what you already own

Check your cupboards for suitable long-life foods, spare batteries, torches and other essentials.

You may already have more of an emergency kit than you realise.

Set aside small amounts of cash

If you can afford it, try setting aside £5 or £10 at a time until you've built a small emergency cash reserve.

There's no need to withdraw a large amount in one go.

Buy food you'll actually use

Rather than buying expensive specialist survival products, keep a little extra of the everyday long-life foods your household already eats.

Rotate them into your normal meals before they expire.

Keep your emergency fund separate

Emergency cash at home serves a different purpose from savings in the bank.

Cash is a short-term backup for payment outages. An emergency savings fund can help with unexpected costs such as car repairs, replacing appliances or a temporary loss of income.

If you're able to build savings, it generally makes sense to keep larger amounts securely in an appropriate bank or savings account rather than at home.

Avoid paying fees to withdraw cash

If you need cash, look for a free-to-use cash machine where possible.

LINK has a Cash Locator to help you find nearby withdrawal facilities.

Should you withdraw emergency cash now?

Keeping a little cash available could be sensible, particularly if you usually rely entirely on cards or your phone.

But the government's advice isn't a reason to panic or leave yourself short of money for everyday essentials.

Start by considering what your household would need during a short payment outage.

If you can comfortably set aside £50, £100 or another suitable amount, that's an option worth considering. If you can only afford a few pounds, that's still a starting point.

And remember that emergency preparedness is about more than cash. Having food, water, medication and a way to get reliable information may prove just as useful.

The goal isn't to stockpile money. It's to have a small backup plan for the occasions when technology doesn't cooperate.