The Post Office has pledged to keep cash services it provides running for another five years.
A new five-year banking deal has been announced between banks and building societies and the Post Office, as Neil Brocklehurst takes the reigns as chief executive today.
The new deal will see the Post Office continuing to facilitate access to cash and banking services to millions of customers and small businesses from January 2026 until December 2030.
It comes as MPs warn it may becomes necessary for the Treasury to mandate cash acceptance in the future if those who rely on cash are not adequately supported.
A report by the Treasury Committee published today said the Government’s lack of action on access to cash will lead to a two-tier society.
It found that the vulnerable are paying a premium on essential goods and services as the number of places that accept cash falls.
The Post Office has pledged to keep cash services it provides running for another five years until December 2030.
Over half of people use cash once a week for day-to-day payments, research from the Post Office reveals. Nine in ten adults believe it’s important to maintain access to cash in the UK.
Many Britons have turned to the Post Office to get their hands on their cash, as bank branches continue to be shuttered across the country.
Since January 2020, business and personal customers have completed over 760million transactions in Post Offices across the UK
The deal between banks and building socities and the Post Office, known as ‘The Banking Framework’, was first established in 2017. It was extended for a further three years in 2022.
It enables customers of 30 banks and building societies to use their local Post Office to withdraw and deposit cash, make balance queries and deposit cheques.
As well as Post Office ‘s network of branches, the Post Office also runs 150 Banking in partnership with Cash Access UK, with the 150th Banking Hub opening its doors yesterday in Treorchy, Wales.
Banking Hubs support local high streets with their cash needs, enabling individuals and small businesses to access banking services if their local bank branch closes.
For local businesses in particular, having a nearby Post Office that allows them to deposit daily cash takings is essential.
The new banking deal will also provide a boost to post masters as the Post Office is increasing the amount of money postmasters receive for handling cash transactions.
The Post Office was not able to say how much postmasters currently receive for handling cash transactions or the exact amount they will receive under this new deal.
However, we revealed last year that it has become a major profit spinner for the Post Office, with top executives paid bonuses depending on, among other things, the amount of banking revenue the firm makes.
It is also investing in the automation of cash services in-branch to reduce costs for postmasters and to give customers a similar experience to what they would expect from modern retailers.
Mr Brocklehurst says: ‘This new, five-year agreement with banks and building societies ensures our branches remain vital hubs for cash access and provides certainty for businesses and individuals nationwide when it comes to their everyday banking.’
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