Thousands of Barclays customers 'face having no access' to pensions

Thousands of Barclays customers ‘face being stranded without access to their pensions’ due to bank’s controversial ban on Post Office cash withdrawals

• Barclays will ban customers from withdrawing cash at post offices from January
• Post Office minister Kelly Tolhurst said the situation was ‘disappointing and sad’ 
• Critics said that the fiasco had created distress for thousands of pensioners

The Post Office minister has been forced to intervene after it emerged thousands of Barclays customers face being stranded without access to their pensions.

Retirees who switched to Barclays could be left without access to their money after the bank announced it will ban customers from withdrawing cash at post offices from January.

Post Office minister Kelly Tolhurst said the situation was ‘disappointing and sad’ and that she will investigate.

Pensioners have become more reliant on basic cash services at the Post Office because of the closure of thousands of bank branches around the country. More than 3,312 high street bank and building society branches closed their doors between January 2015 and August this year [File photo]

She said: ‘I am happy to raise that particular issue with Barclays and take the point forward.’

It comes a day after the Mail told how Barclays raked in almost £17million in profits a day over the summer – £10million more than the bank expects to save a year from its cash ban at post offices.

Since 2016, retirees using the simple card account offered by the Post Office have faced pressure to open a bank account instead. They were reassured that the ‘vast majority of bank accounts are accessible through a post office’.

Retirees who switched to Barclays could be left without access to their money after the bank announced it will ban customers from withdrawing cash at post offices from January [File photo]

Some 900,000 Britons use the card account to receive pensions and benefits payments, and withdraw them as cash.

It is feared that people who like the simple accounts could struggle with the complexity of modern banking.

The account was introduced 15 years ago, but it is being closed down in November 2021.

Letters sent by the Department for Work and Pensions (DWP) telling users they must switch to a bank do not mention that Barclays will not allow its customers to withdraw cash at the Post Office from January.

They also do not spell out that the DWP will provide a similar replacement service for those who do not wish to use a bank.

Critics last night said the fiasco had created distress for thousands of pensioners.

Some 900,000 Britons use the card account to receive pensions and benefits payments, and withdraw them as cash. It is feared that people who like the simple accounts could struggle with the complexity of modern banking [File photo]

Natalie Ceeney, chairman of the Access to Cash Review, said: ‘The cracks in the system are widening.

‘Even more people are affected by this decision and I’m yet to read or see anything that suggests that customers are being put first. It’s time we introduced a guarantee on cash.’

Personal finance expert Martyn James, of Resolver, added: ‘It is a sign of the immense impact Barclays’ decision will have that people, who felt they were pressured into switching their card accounts to the bank, might now struggle to get hold of their cash. 

Access to cash is absolutely crucial – and the failure to allow people to get hold of vital payments like pensions or benefits can have potentially life-changing consequences.’ 

Pensioners have become more reliant on basic cash services at the Post Office because of the closure of thousands of bank branches around the country.

More than 3,312 high street bank and building society branches closed their doors between January 2015 and August this year. 

At least 481 were Barclays branches, according to Which? magazine.

Letters sent by the Department for Work and Pensions (DWP) telling users they must switch to a bank do not mention that Barclays will not allow its customers to withdraw cash at the Post Office from January [File photo]

In the face of government pressure, many pensioners have refused to close their Post Office card accounts – saying they do not trust banks.

Father-of-two Roland Howes, a retired manufacturing engineer in his 70s, who lives in Clanfield, Hampshire, has had his card account since he retired in 2005.

He said: ‘I want as little to do with banks as possible, I want to keep my Post Office card. If it ain’t broke, don’t fix it.

‘Barclays continues to make enormous profits and shut branches. What they’ve done proves that the card account should be kept.’

The Post Office said removing the card account had been a ‘DWP initiative’.

The Government said the card account was designed to be a temporary measure to encourage people to open bank accounts, and a similar replacement service will be provided.

Barclays declined to comment, but has previously said none of its customers will be left without access to cash thanks to new cashback schemes, pop-up banking ‘pods’ and a special cheque cashing service.

Calum Greenhow, of the National Federation of SubPostmasters, said: ‘Some of the most vulnerable people in society are being passed from pillar to post by institutions they should have been able to trust.’

Have you been affected by Barclays’ decision? Please write to [email protected]

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