Barclays’ hammer blow to Post Office

Barclays bosses deliver hammer blow to struggling Post Offices by stopping savers from withdrawing cash at branches

• Campaigners accused the bank of prioritising its bottom line over customers
• They warned that those in rural and isolated communities would be worst hit
• Experts warned Britain is on the brink of sleepwalking into a cashless society

Barclays drove another nail into the Post Office network’s coffin – as it prepared to ban its savers from withdrawing cash at local branches.

In yet another blow to rural and elderly customers, the high street giant yesterday confirmed that it will this week tell customers they won’t be able to take money out at their local Post Office from January.

Furious campaigners accused the bank – which last year made £3.5billion in profit before tax – of prioritising its bottom line over serving its customers.

They warned that those in rural and isolated communities, who often already have limited access to bank branches and cash machines, would be worst hit.

Barclays drove another nail into the Post Office network’s coffin – as it prepared to ban its savers from withdrawing cash at local branches (file image)

Experts have warned that Britain is on the brink of sleepwalking into a cashless society within the next 15 years. 

The UK has lost a third of its bank branches in the last five years, according to Which?. The consumer group estimated that Barclays has closed 481 sites during that period – 33 per cent of its network – although the bank has refused to disclose an official figure.

One in ten free cash machines also closed or started charging customers between January 2018 and May 2019.

In July this year MPs on the Treasury Select Committee called for banks to pay for Britain’s 11,500 Post Offices to act as proxy branches. 

They criticised the Government for failing to hold banks to account for leaving millions of rural customers without some basic banking services.When banks close branches they typically point customers towards local Post Offices as many offer simple cash and cheque services.

Barclays said customers will still be able to deposit cheques and cash and check balances – but will not be able to withdraw money with debit cards. Customers can currently take out up to £300 a day over the counter using their card.

A small number of customers with a special cheque book may still be able to access cash, but those with ordinary cheque books will not, Barclays added.

Barclays said customers will still be able to deposit cheques and cash and check balances – but will not be able to withdraw money with debit cards

Natalie Ceeney, of the Access to Cash Review, said: ‘The cash system that supports communities must be cherished, not undermined. It is for that reason that I urge Barclays to reconsider.’

Martyn James, of complaints service Resolver, added: ‘In doing this, Barclays is putting profits before its customers. Access to cash is essential to people, especially the elderly or vulnerable.’ Last year Barclays Group made £3.5billion in profit before tax. The bank’s chief executive Jes Staley earned £3.4million, down £500,000 on the previous year because his bonus was docked after he tried to unmask a whistleblower.

Barclays was one of the banks hardest hit by the PPI scandal and has paid out £9.2billion since 2011.

It is expected to pay out another £360million, but could be forced to increase this if the number of genuine victims is higher than expected.

Barclays denied its decision was to do with cost-cutting and said it was investing in schemes to help its customers access their cash. Last night the bank pledged not to close any more branches in remote areas, or where it is the last bank in town, for the next two years.

In July this year MPs on the Treasury Select Committee called for banks to pay for Britain’s 11,500 Post Offices to act as proxy branches

It will also introduce a cashback scheme in 200 locations in January, which will allow customers in remote areas to withdraw cash from local businesses. The Post Office is expected to make an announcement on the changes this week.

The Mail is campaigning to save rural post offices and the services they offer to remote communities.

Adam Rowse, managing director of branch-based banking for Barclays, said: ‘By maintaining last-in-town or remote branches over the next two years, and working with the community, we hope to increase demand and keep these branches viable.’

A spokesman for banking trade body UK Finance said: ‘The industry is committed to ensuring access to cash remains free and widely accessible for those that continue to need it.’

Earlier this month, ATM network provider LINK launched a scheme, funded by banks and building societies, to enable remote communities to request a free cash machine.

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