Nick welcomes Barclays u-turn on Post Office cash

Arundel & South Downs MP Nick Herbert has welcomed the decision by Barclays Bank to reverse plans that would have prevented customers from making cash withdrawals at Post Office counters from January.

Mr Herbert had strongly criticised Barclays for its initial decision, describing the move as “completely unacceptable”.

The MP raised the issue with Barclays Bank and ministers, and called for a Commons debate.

Following a meeting between the Chief Executive of Barclays UK, Matt Hammerstein, and the Economic Secretary to the Treasury, John Glen MP, on Thursday (24 October), Barclays reversed its decision.

Barclays has now affirmed its full participation in the Post Office Banking Framework for the next three years, including maintaining the cash withdrawal facility using debit cards for Barclays’ customers.

Mr Herbert’s Arundel & South Downs constituency has had one of the highest rates of bank closures, with just one bank branch remaining in the whole constituency, in Storrington.  All the other villages are now reliant on Post Office services. 

When bank branches began to close in villages, the MP lobbied to ensure that a full range of banking services could be made available through the Post Offices.

Mr Herbert said: “After taking up this issue with ministers I was delighted to see Barclays reverse its decision. With so many bank branch closures, it was essential to protect the ability of Post Offices to provide banking services. Barclays’ plans threatened to undermine that, so I am grateful to the Government for stepping in”.

In a tweet following Barclays’ decision, Hexham MP Guy Opperman, Minister for Financial Inclusion, singled out Mr Herbert as one of the people who deserved credit for the reversal.

John Glen MP, Economic Secretary to the Treasury, said: “It is vitally important that we have a model for the Post Office Banking Framework which is sustainable, now and in the future. We welcome Barclays’ commitment to engage constructively on this so we can safeguard access to cash for everyone who needs it.”

ENDS 

Notes

1. To read the full statement on the decision from Barclays Group CEO, Jes Staley, see https://home.barclays/news/press-releases/2019/10/barclays-and-the-post-office-banking-framework/.

2. To read Nick’s recent article on the Barclays Bank issue, see https://www.nickherbert.com/news/2019/10/16/barclays-bank.

3. To read the statement on Twitter from Guy Opperman MP, see https://twitter.com/GuyOpperman/status/1187413274213699584.

4. To read the statement on Twitter from John Glen MP see https://twitter.com/JohnGlenUK/status/1187402412027469825.