Hexham MP criticises Barclays over plan to stop customers withdrawing cash at post offices

MP Guy Opperman is asking Barclays executives to drop plans to stop Barclays customers withdrawing money from a Post Office.

The bank has announced it is to opt out of part of the agreement banks have with Post Offices which allow scustomers to withdraw cash and deposit money.

Barclays customers will still be allowed to deposit money - but not to withdraw cash from a Post Office counter using a debit card.

Mr Opperman, MP for for Hexham, is to meet managers from the bank to complain it has gone back on its word.

The MP said: “when Barclays shut their branches in Bellingham, Corbridge and Ponteland they stressed that their customers could use the Post Office as a local facility. This really matters in rural areas and I have summoned Barclays executives to the House of Commons on Tuesday to invite them to think again.”

He added: "I am calling on the bank to reverse its plan for the sake of local people who still rely heavily on cash. What is particularly galling is that in October last year the Barclays executives were lauding their relationship with the post office as a way of ensuring rural communities have access to financial services.

"This will hit communities like Bellingham very hard and they need to rethink. An approach like this does not reflect well on the social responsibility of Barclays."

The Post Office has signed a new agreement with 28 banks and building societies, to last three years from January. Barclays is the only one to exclude cash withdrawals from its part of the agreement.

Instead, the bank says it will launch a cashback scheme at small businesses in remote towns.

Barclays says it is focusing investment on free-to use ATMs and cash back at businesses, as the most efficient way for cash withdrawals. It also says it is "reducing related reliance on the Post Office."

It confirmed in a statement that customers and businesses will be able to pay in cash and cheques and to check their balance at post offices, but the facility for over the counter cash withdrawals will end from January 2020. Cash withdrawal by cheque will be available, subject to arrangement.

Barclays also says it is promising not to close branches in remote areas, or where it is the last bank in town, for the next two years. This will see over 100 branches ring-fenced and remain open until at least October 2021.

Adam Rowse, Managing Director for Branch Based Banking at Barclays, said: "We are constantly exploring new ways to evolve the role of the branch. 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.

"We also recognise that there are opportunities to support customers with access to cash where there is no branch or ATM nearby. We are launching a cash back offering working with merchants to give customers access to cash over the counter. By behaving differently, we hope to see a real difference in how customers interact with us."