New Post Office deal with banks protects small businesses' access to cash

Post Office has agreed a new partnership with UK banks and building societies which guarantees access to cash for individuals and small businesses at Post Office branches until December 2030.

Known as 'The Banking Framework', and first established in 2017, the extension of the deal means customers of 30 banks and building societies can continue to use Post Offices to withdraw and deposit cash, make balance queries and deposit cheques.

With the widespread closure of banks across the UK, many small businesses rely on having a nearby Post Office that allows them to deposit daily cash takings.

Since January 2020, business and personal customers have completed over 760 million transactions in Post Office branches, with the total volume of business and personal deposits increasing every year between 2020 and 2024.

Post Office research also found that 34% of consumers get frustrated if they are refused to pay for something in cash, 30% admit it makes them go as far as not wanting to use the business and 36% say they most frequently use cash in small local shops or markets.

The new partnership was announced by Neil Brocklehurst on his first day as the new CEO of Post Office. He said:

"Post Office is an organisation that needs change, and I am proud to have been appointed the new CEO with a mission to deliver this. I am determined to deliver a 'New Deal for Postmasters' that drives up postmasters' incomes and strengthens their voice in the day-to-day running of the business.

"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.

"This agreement also means that we will be able to increase the income postmasters receive for delivering banking services, a key pillar of our transformation plans."