Britons hit hard by the recession have preferred the smaller denomination £5 notes at the cash machines of their banks.

They feel they can manage their money better with the small notes as against the £10 or £20 notes that were offered hitherto.

High street banks would be filling up their cash machines in low income areas as well as University and College sites with the £5 notes.

People in many areas often withdraw just £10 or £20 each time. HSBC and Barclays bank will offer £5 note in such places.

But in the economic downturn, the Payments Council, which is responsible for ensuring payment systems work, says it is increasingly being asked for the option of £5 as well.

Sandra Quinn, the council's director of communicatrions, said: "The recession may well be playing a part.

"They might find the lower denomination notes a better way of managing their money."

A Barclays spokeswoman said it would 'take into account the local social demographic' when deciding where the £5 note will be offered.

She said: "It tends to be more in the North."

HSBC began stocking £5 notes in the South West and the Midlands last month as part of a joint venture with the Bank of England.

Ron Delnevo, managing director of Bank Machine, which brought in £5-only ATMs last year, said the change was part of a shift away from plastic as people keep a closer eye on their books.