The Post Office has announced a new Banking Framework agreement with 28 UK banks to ensure that millions of their customers continue to have national, free access to everyday banking services, at the same time as ensuring postmasters and Post Office receive a fair remuneration for providing these vital services.
Last year Post Office branches handled over 130 million transactions on behalf of UK banks. With over 11,500 branches the Post Office is ideally positioned to provide everyday banking services for individuals and businesses. Post Office branches remain at the heart of communities across the UK, including those where bank branches no longer exist. Millions of customers of UK banks rely on these vital services – more than a quarter of people (28 percent) have withdrawn cash at their local Post Office in the last year.
For people living in more rural or urban deprived areas Post Office branches are a real lifeline, ensuring the financial inclusion of more vulnerable customers by providing vital services such as cash withdrawals, bill payments and postal services all under one roof. With more than half of people (52 per cent) having visited cash only retailers in the last year, easy access to cash is key for both retailers and consumers.
Ben Lake, MP for Ceredigion said: "Post Offices provide a vital public service to local communities across Ceredigion, in particular by providing access to some banking services.
“I am delighted that banks have signed this new agreement, enabling the Post Office to continue serving communities in this way, as well as ensuring postmasters’ pay is fair and reflective of the essential service they provide.
"It is, however, sorely disappointing to hear that Barclays has decided to discontinue cash withdrawals from the Post Office. The customers who rely on this service are often in rural and isolated communities, and as such I am very concerned about the impact this will have. I shall be seeking a meeting with Barclays in the near future to raise these concerns, and to encourage them to pursue the proposal of sharing premises with other banks and businesses.”
All the banks have reconfirmed their commitment through the new agreement that their customers can access a range of cash and cheque banking services at Post Office branches. However, the Post Office said it was disappointed that Barclays has chosen to stop allowing their customers to make cash withdrawals from 8th January 2020. Barclays’ customers will be able to continue to deposit cash, cheques and access change and balance enquiries at Post Office branches after this date as these services are unaffected by this decision.
In 2017 the Post Office and the major UK High Street banks entered into an industry-wide agreement enabling anyone with a UK bank account to undertake a wide range of banking transactions at post offices, ensuring there are convenient, local banking facilities available for individuals and businesses in communities across the UK, even when the last bank branch has closed.
Since then, the Post Office has been working closely with the Banks to agree an improved fee structure which reflects the true value of the excellent service that Post Office branches undertake on their behalf, as the number of bank branches continues to reduce. This new agreement ensures that easy access to everyday banking services can be maintained right across the country, while remunerating postmasters appropriately and allowing the Post Office to invest in future service improvements.