Barclays refuses to back down over Post Office ban

As MPs join growing backlash against bank . . .

DEFIANT Barclays bosses last night refused to back down as anger mounted over their ‘unjustifiable’ decision to ban customers from withdrawing money at local post offices.

The bank insisted its plans would not restrict access to cash despite widespread condemnation of the move, with MPs yesterday joining the backlash.

The chairmen of Parliament’s business and treasury select committees both called on the bank to change course, warning its move risked depriving elderly and rural customers of a vital lifeline.

The calls piled further pressure on Barclays just hours after Andrea Leadsom, the Business Secretary, also criticised its ‘very disappointing’ decision.

Labour MP Rachel Reeves, chairman of the business committee, said she was due to hold a crunch meeting with bank bosses in a bid to convince them to drop the ‘terrible’ changes.

She also hinted Barclays could be rebuked in an upcoming report by MPs on the future of the state-owned Post Office network.

Many rural communities have been forced to rely on the Post Office network for financial services after banks axed thousands of branches up and down the country in a bid to cut costs.

The Treasury committee also waded into the row, with acting chairman Catherine McKinnell saying: ‘Barclays’ decision to prevent customers from withdrawing their own cash from post offices is hugely disappointing.

‘Banks cannot be left to dictate what happens to people’s ability to access their cash.’

Barclays sparked outrage on Monday when it revealed plans to ban customers from withdrawing cash from branches of the Post Office from January. The move is a setback to the struggling post office network, because banking services are a vital source of income for many postmasters.

It is also another hammer blow to rural communities, which have been hardest hit by bank branch closures. The Mail is campaigning to save rural post offices and the services they offer. More than 3,300 branches have shut their doors between January 2015 and August 2019, research by consumer group Which? found.

Barclays, which made a £3.5bn profit last year, has denied its decision is to do with cost- cutting and claims it is investing in schemes to help its customers access their money more easily.

Last night a spokesman said: ‘Our commitment means none of our customers will be without access to cash. Despite removing cash withdrawals, our financial contribution to the Post Office for the banking framework will actually increase in 2020.’

If you have been affected by Barclays’ decision, write to moneymail@dailymail.co.uk