BARCLAYS has reversed its controversial decision to axe cash withdrawals from Post Office branches from January.
The bank had previously said that customers would no longer be able to make over-the-counter cash withdrawals using their debit cards from Post Office branches from January 8 2020.
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But in a statement on Thursday, the bank said it will now commit to “full participation” in the Post Office’s banking framework.
Other banks and building societies have already committed fully to the three-year agreement to provide everyday banking services through the Post Office.
The announcement was welcomed by the the Business, Energy and Industrial Strategy Committee.
Chairwoman Rachel Reeves said: “Barclays have finally read the writing on the wall and caved to public and political pressure to dump this woefully misguided policy.”
The committee highlighted the pressures on the Post Office in a report.
DECISION A ‘MASSIVE RELIEF’
It had been calling on Barclays to reverse its decision as well as attacking a “rush” to offload Crown Post Offices to WH Smith.
The committee also called for a long-term funding commitment beyond 2021 to support the Post Office network.
The MPs said that between 2000 and 2010, 6,500 Post Office branches were closed.
Around 15 million cash withdrawals were made by Barclays customers through the Post Office last year.
Consumer group Which? recently found that Barclays had closed 481 branches – around a third of its network – between the start of 2015 and August 2019.
Gareth Shaw, head of money at Which?, said: “Barclays’ decision to bow to public pressure and reverse this move will be a massive relief for its customers, who have seen almost 500 high street branches close over the last four years.”
Barclays has previously announced that it plans to introduce a cashback scheme from next year involving small businesses, and has pledged not to close branches in remote areas or where it is the last bank in town for the next two years.
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