Barclays backs down and agrees deal to keep cash withdrawals at the Post Office

Barclays has reversed its controversial decision to no longer accept over-the-counter cash withdrawals at the Post Office. The u-turn will allow Barclays customers to access free banking services including getting cash using their debit card for the next three years.

Barclays made the decision in early October and has faced fierce criticism from consumers and politicians as concerns grow over the dwindling number of bank branches available to those especially in rural communities, and the reductions on free-to-use ATMs.

Last week the Group Chief Executive of Barclays, Jes Staley, received a letter from more than 100 MPs asking him to reverse the decision and leaders from the Bank had just been told they would face a committee of MPs to explain their decision. The Bank was also about to receive further condemnation for their decision in a report published today by the Business, Energy and Industrial Strategy Committee, that described Barclays’ decision as a “highly retrograde step, which hurts vulnerable customers”.

Last year Barclays customers made around 15 million cash withdrawals through the Post Office and the Bank was the only one of 29 to call notice on their agreement with the Post Office. All the other 28 banks have agreed a new deal that continues to give their customers free banking services, including cash withdrawals. 

Jes Staley, Barclays Group CEO said the Bank had 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.”

He continued to say that the Bank continues to “have concerns regarding the sustainability of relying on this model in the longer term, and………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."