Post Office extends banks’ cash deal as MPs call for mandated acceptance
The Post Office has reached a five-year banking deal with lenders and building societies to keep cash services running amid a continued retreat of banks from the high street.
This renewed deal follows research commissioned by the company, which found nine in ten people believe it is important to maintain access to cash.
The partnership enables customers of 30 banks and building societies to use their local Post Office to withdraw and deposit cash as well as make balance queries and deposit cheques.
There are 378 branch closures lined up for 2025, leaving Brits scrambled for cash access. Many have turned to the Post Office local sites shuttered.
This follows a scathing report from the Treasury Committee that said the UK risks a “two-tier society” if the government does not act on cash acceptance.
Committee chair Dame Meg Hillier MP said: “As a society, we must avoid sleepwalking into a situation where cash is no longer widely accepted.
“This is the beginning, not the end, of our scrutiny of this issue. The Government needs to take this seriously.”
The report found that vulnerable people were paying a premium on essential goods and services due to the lack of places accepting cash.
The Post Office revealed there have been 760 million transactions at its sites between business and personal customers since January 2020.
Lenders partnered with the Post Office in 2017 for “The Banking Framework”, and extended the collaboration for three-years in 2022.
Sky News reported the deal would be worth £350m annually to the Post Office – up from £250m a year in the previous agreement.
Ross Borkett, Banking Director at Post Office, said: “This new agreement strengthens our strategic partnership with the UK’s banks and building societies to provide critical cash services across the UK, working with the banks to meet the new Access to Cash regulations introduced last year.
“This partnership will bring investment into our branches to underpin the vital role postmasters play in supporting consumers and businesses with access to cash.”