Banks brace for Post Office showdown over money entry payment 

Britain’s largest banks are bracing themselves for talks with the Post Office over a brand new deal to permit hundreds of thousands of their prospects to withdraw money at its branches.

Sky News has learnt {that a} group of lenders together with Barclays and HSBC are within the technique of forming a shared curiosity group to characterize the trade in talks with the government-owned firm throughout the coming months.

The negotiations shall be geared toward thrashing out a brand new Banking Framework Agreement, the most recent iteration of which can expire on the finish of subsequent 12 months.

Roughly 30 banks and constructing societies take part within the present deal, paying in combination roughly £200m yearly to facilitate buyer entry to the Post Office’s 11,500 branches.

The service is especially priceless to those that nonetheless depend on bodily money after a nine-year interval during which nearly 6,000 financial institution branches have been closed throughout Britain.

Banking trade sources say they anticipate a requirement from the financially challenged Post Office to hike the payment it costs them for utilizing its websites, with some speculating that they count on it to hunt as much as £400m-a-year.

If such a requirement does materialise, they added, the trade was anticipated to withstand it vigorously on the premise of knowledge displaying that financial institution prospects’ utilization of the service has remained broadly flat.

In 2023, greater than £10bn value of money was withdrawn over-the-counter and £29bn in money was deposited over-the-counter, the Post Office stated.

The negotiations over a brand new settlement with the banks will kick off at a essential time for the scandal-plagued Post Office.

Reliant on an annual authorities subsidy, the community’s popularity has been left in tatters by the Horizon IT scandal and wrongful conviction of a whole lot of sub-postmasters.

A Post Office spokesperson stated: “Our partnership with 30 banks and building societies ensures that no one who relies on cash is left behind, made possible by our postmasters in almost every community of the country.

“This is all of the extra vital following the introduction of the Access to Cash laws and additional highlights the essential function postmasters play as we speak, and sooner or later, in supporting prospects with accessing their money.

“We do not comment on ongoing commercial negotiations.”

UK Finance, the banking trade lobbying organisation which is coordinating the institution of the shared curiosity group, declined to remark.