Post Office has secured a new five-year partnership agreement with the UK’s banks and building societies, underpinning access to cash for millions of individuals and small businesses at Post Office branches from January 2026 until December 2031.
Post Office has secured a new five-year partnership agreement with the UK’s banks and building societies, underpinning access to cash for millions of individuals and small businesses at Post Office branches from January 2026 until December 2031.
The Banking Framework, first established in 2017 and now in its fourth iteration, also secures the critical role of postmasters up and down the country in providing critical face to face banking services to their communities by enabling customers of 30 banks and building societies to use their local Post Office to withdraw and deposit cash, make balance queries and deposit cheques.
For local businesses in particular, having a nearby Post Office that allows them to deposit daily cash takings is essential, and Banking Framework 4 provides the confidence that this will continue.
Here's Banking Director, Ross Borkett, explaining more:
Post Office is committed to working with postmasters to secure a brighter future in which increasing postmaster remuneration is a priority. As set out in the Transformation Plan, the ‘New Deal for Postmasters’ includes strengthening postmasters’ commercial offer to their customers, particularly in banking. The renewal of the Banking Framework is central to achieving this mission, which is essential amongst the increasing costs of continuing to operate on the high street for postmasters. As part of the framework, Post Office is making a major investment in the automation of cash services in-branch to reduce postmasters’ cost-to-serve in their branches and we will also be increasing remuneration for these critical cash services.
The renewal follows recent research commissioned by Post Office, revealing that:
- 89% of respondents believe it’s important to maintain access to cash in the UK.
- 84% say losing access to cash would be inconvenient .
- Over half (53%) use cash at least once a week for everyday transactions.
- 15% of respondents note that their cash usage has increased over the last year.
- Over a third (34%) of those who have used cash in the past year claim it frustrates them if they are refused to pay for something in cash. And nearly a third (30%) say it makes them go as far as not wanting to return to the shop/use the business again and find an alternative.
- Many people rely on cash when shopping with small businesses, with over a third (36%) of respondents who have used cash in the past year stating they have done so most frequently in small local shops or markets.
Post Office’s network of branches, as well as 150 Banking Hubs run by Post Office in partnership with Cash Access UK, play a critical role in supporting local High Streets with their cash needs, enabling individuals and small businesses to have confidence in continued, no fee access. Additionally, Post Offices provide convenient access to cash, with longer opening hours than bank branches and around 3,000 locations open on weekends.
Since January 2020, business and personal customers have completed over 760 million transactions in branches across the UK. Post Office data also shows that the total volume of business and personal deposits has increased every year between 2020 and the end of 2024.
Neil Brocklehurst, Post Office Acting CEO, said:
“This new, five-year agreement provides certainty for businesses and individuals nationwide, ensuring our branches remain vital hubs for cash access. Many communities depend on their local postmaster for access to their cash and we’re delighted that we will be able to increase the remuneration postmasters receive for delivering this essential service. We’ve worked hard to secure this new agreement through reinforcing just how important it is to communities across the UK and why Post Office, and our postmasters, are the best fit to continue to provide its services, securing a commitment from the banks that is substantially longer than those previously agreed.”
Ross Borkett, Banking Director at Post Office, said:
“This new agreement strengthens our strategic partnership with the UK’s banks and building societies to provide critical cash services across the UK, working with the banks to meet the new Access to Cash regulations introduced last year. This partnership will bring investment into our branches to underpin the vital role postmasters play in supporting consumers and businesses with access to cash. We’re looking forward to continuing our strategic partnerships with the 30 banks involved and invite any additional financial institutions to get in touch if they’re interested to join the Framework too.”
Tony Fleming, postmaster at Thorne Post Office and Thorne Banking Hub operator, said:
“The cash banking services we provide in branch are incredibly important and popular with our customers – that's why it is great that this new agreement has been designed to benefit communities. It also plays a big part of the day to day running of the branch and therefore the framework is just as important to postmasters running commercial businesses.
“Customers will often come in not just looking to deposit or withdraw cash, but to get advice and face-to-face support directly from someone, rather than via digital channels. For many people, we provide them with the confidence they need when it comes to access to cash, and the extension of the agreement means that we can reassure our customers that this service will remain.”