Barclays to continue Post Office withdrawals

BARCLAYS’ customers will be “deeply relieved” at the bank’s decision to continue allowing over-the-counter cash withdrawals at post offices, according to campaigners.

The bank reversed a decision to axe cash withdrawals from Post Office branches from January 8, 2020, after a backlash from MPs and consumer campaigners.

The bank had previously announced that customers would no longer be able to make over-the-counter cash withdrawals using their debit cards from Post Office branches.

But in a statement this week, the bank said it will now commit to “full participation” in the Post Office’s banking framework.

Other banks and building societies have already committed fully to the three-year agreement to provide everyday banking services through the Post Office.

Caroline Abrahams, charity director at Age UK, said: “Many older people will be pleased and deeply relieved to learn they can continue to withdraw cash from the Post Office if they bank with Barclays, and it’s to the bank’s credit that they have responded so positively to the views their older customers have expressed.”

Barclays Group chief executive Jes Staley said: “Ultimately we have been persuaded to rethink our proposals by the argument that our full participation in the Post Office banking framework is crucial at this point to the viability of the Post Office network.

“Whilst we have concerns regarding the sustainability of relying on this model in the longer term, and want to work with Government and others to address the problems inherent in it, we recognise that the Post Office is a network valued by many communities in the UK today.

“So we have amended our position, and will now maintain a full service proposition in the

Post Office for our customers, including cash withdrawals using a debit card, for the next three years.”

The announcement was welcomed by the Business,

Energy and Industrial Strategy (BEIS) Committee.

Chairwoman Rachel Reeves said: “Barclays have finally read the writing on the wall and caved to public and political pressure to dump this woefully misguided policy.”

The committee highlighted the pressures on the Post Office in a report.

It had been calling on Barclays to reverse its decision as well as attacking a “rush” to offload Crown Post Offices to WH Smith.

The committee also called for a long-term funding commitment beyond 2021 to support the Post Office network.

The MPs said that between

2000 and 2010, 6,500 Post Office branches were closed.